Ingvar Kamprad, founder and chairman of Ikea, is stepping down and handing the reins to his son, according to Bloomberg.com.
Mathias Kamprad will succeed Per Ludvigsson as chairman of the company, according to a news release from the company. The 70-year old has been working towards retirement in the past few years.
“I feel honored and excited about my new assignment as Chairman of the Board of Inter IKEA Group. I am very much looking forward to working closer with Sören and his team,” said the younger Kamprad who was previously the Director of the Board.
Ingvard Kamprad, at an approximate worth of $52.7 billion, ranks fifth on the list of the world’s richest men.
“I see this as a good time for me to leave the board of Inter Ikea Group,” the 87-year old said in the release.
Kamprad will not cease all duties connected with the company. Verdict analyst Matthew Walton says Kamprad will continue to give key input as to how the company should run.
Walton added that the Kamprad’s decision may hint a stronger online push from Ikea.
“Historically, Ikea has been highly resistant to the channel, but developing this side of its offer may be pushed more to the fore now,” Walton said.
Ikea—which is owned by various companies and foundations located in different countries—saw a surge in business during 2012. Its net profit shot up from 87 million euros ($113.76 million) the previous year to 443 million euros ($579 million) which, according to Bloomberg, occurred largely because of a “one-time gain.”
“Our main task will always be to ensure a long life for the Ikea concept by keeping the needs of the many people in mind,” Mathias Kamprad explained in the release. “As this will require investments in both good and bad times, the group strives to be financially independent.”
