Estonia once again shines as a high-growth investment destination, this time demonstrating its attractiveness not only for high-tech industries but also for traditional retail.
This week, Inter IKEA Group—a holding company directly overseeing the IKEA brand and its global operations—announced the completion of the acquisition of the IKEA retail operations in Estonia, Latvia, and Lithuania. The purchase includes three full-size IKEA stores, five additional smaller customer meeting points, e-commerce, and the Digital Retail Development company.
The acquisition, completed on December 14, 2024, comes as IKEA’s Estonian operations report strong financial results, with turnover reaching €95.2M during its financial year between September 2022 and August 2023. The company’s franchise holder Runikon Retail achieved a €9.3M profit, while more than doubling its sales revenue from €44.5M in the previous year.
The first IKEA store in Estonia
“This marks the beginning of a new chapter in our vision to create a better everyday life for the many. The acquisition of the IKEA retail business in the Baltics allows us to gather and share learnings directly across the value chain,” said Jon Abrahamsson Ring, CEO of Inter IKEA Group.
This success is particularly notable given that retail trade has been challenging globally and regionally. “It is a significant development for the IKEA Baltics retail organization. We join Inter IKEA Group with a strong business performance and profitability in the Baltic region,” says Inga Filipova, IKEA Retail Manager Baltics. Within 12 years, IKEA retail has penetrated the markets and now operates 8 customer meeting points, with the 9th—a small IKEA store—in the pipeline.”
The acquisition includes IKEA’s store near Tallinn and a planning studio in Tartu, along with e-commerce operations. Currently employing 448 people in Estonia, IKEA has announced plans to expand its Tartu showroom, indicating continued investment in the market. The company has also seen growth in its business customer segment since the beginning of the year, with strong demand from companies in real estate development.
New chapter in a long partnership
Additionally, the Estonian timber sector is a long-term supplier to IKEA. Approximately 1% of Estonia’s total timber harvest is used by IKEA suppliers, with birch and pine being the most in-demand species. Estonian wood suppliers have maintained a strong partnership with IKEA for over two decades, adhering to strict sustainability standards and FSC certification requirements.
IKEA’s retail journey in Estonia began with a pickup point in Tallinn in August 2019, followed by a Tartu location in November 2021. The company’s first full store opened in Kurna at the end of August 2022 and has been successfully operating ever since.
The acquisition brings IKEA’s Baltic operations directly under Inter IKEA Group, which already owns purchasing, logistics, and production operations in the Baltics and employs around 700 IKEA co-workers. While the retail business will continue to operate through the franchise system, with Inter IKEA Systems B.V. as the franchisor, this integration certainly signals a long-term commitment to the Estonian market and a major vote of confidence.
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