IKEA’s conservation drive extends naturally from this cost-cutting. Adding to the challenge, the suppliers and designers work to customize some Ikea products to make them sell better in local markets. That said, the global middle class, that IKEA targets, shares buying habits: The $120 Billy bookcase, $13 Lack side table, and $190 Ivar storage system are its best-sellers worldwide and average spending per customer globally is even similar: According to IKEA, the figure in Russia is $85 per store visit - exactly the same as in statistically more affluent Sweden. IKEA operates approx 25 US stores, which account for 11% of the company's sales and Germany is its biggest market, accounting for nearly one-fifth of revenue. Sales have been growing steadily each year thanks both to expansion of its store network and the ongoing price cuts - 18 new stores were opened in 2005 and the retailer reduced prices by 3%. Such expansion has kept IKEA’s turnover rising – in 2005 by 17.3% to $18.8 billion from $16.0 billion in 2004. And, although being privately held IKEA’s profit figures are not published, conservative estimates put pretax operating profits at around $1.7 billion. IKEA maintains these profits even while it cuts prices steadily with operating margins of approximately 10% being among the best in home furnishing.

To keep growing, IKEA is accelerating store rollouts in both large outlet and new high-street formats. Nineteen new large outlets are set to open worldwide in 2006, at an average cost of $66 million per store. The firm plans to boost their profile in three of its fastest-growing markets: In Russia, where it is already a huge success in Moscow, in China, where is has a strong footprint, and in the US, where the goal is to have 50 outlets by 2010. IKEA demonstrates that, when underpinned by strategic partnerships with manufacturers and suppliers, providing access to affordable contemporary design, in an exciting, yet simple format can be a winning formula.