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Ikea’s new CEO Juvencio Maeztu is calling to tell me about the Ingka Group’s latest earnings (that’s the parent company behind Ikea). As it turns out, there are worse fates than a company making a little less money than it did last year. In August, Ingka Group announced that its long-time CEO Jesper Brodin would be stepping down, as Maeztu took the role. An economist by training, Maeztu has worked at the company for more than 25 years, and brings a powerful international perspective to the positionhaving started as a store manager in Madrid, before eventually taking over as CEO of Ikea India. For the past seven years, hes served as deputy CEO and CFO under Brodin. We spoke around the release of Ingkas 2025 financial earnings, which Maeztu characterizes to me as mostly flat. Revenue is down 0.9% (to 41.5 billion) as the company fights inflation to keep prices low. Tariffs have yet to fully enter the equation in these figuresbut Trumps 50% tariffs on furniture announced in September were significant enough that Ikea raised prices to help offset them. On the brighter side, store traffic was up 1.3%, online sales were up 4.6%, and overall item sales grew 1.6%. In our conversationrepresenting some of Maetzus first public comments since being appointed to the positionhe detailed his biggest priorities for the company, while addressing the challenges of operating a budget-friendly furniture business in a volatile global economy. Now that youre officially CEO, what is your immediate focus for Ikea? The announcement was made mid-August, and the last three months I have been traveling around many countries to learn about the reality from the shop floor, and then talking with consumers and colleagues and coworkers. And that has cemented three things that are quite important to deliver to the care vision (that caring for people and the planet is core to Ikea’s purpose). Because we will not change the care vision. We will not change the business idea. I will keep putting a lot of focus on growth; not growth only in mature markets or more European-based growth, but many markets, U.S. included, and India and China. Growth is a way to be more present in homes. So growth is not connected with profit to the shareholder, its connected with affordability for the many people. You could say we can never achieve our vision if we don’t grow. So we have to substantially grow. The second thing is to double down . . . on the need for cost transformation . . . and the need to keep costs low. Because the best frame of low price is a low cost. You cannot be a low-price company if you are not a low-cost company. And I will double down on the resilience of the company. And then the third one is simplicity. So normally, big companies like us start to be bureaucratic, and from the leadership perspective, we have to learn how to lead the company in a more agile way, faster decision making, less layers, and at the same time, more agility in the decision making. We have a good brand, we have a good omni channel capabilities today. We have amazing cultural values with high coworker engagement, super high right now. And then at the same time, we have a strong balance sheet. So you could say we have a lot of assets that allow us to really double down in the growth, in the cost transformation, and the simplicity. Looking over your earnings, where is that revenue dip coming from? We are selling more quantities at a lower price. If I take one step back, we measure performance in four dimensions. So one of the four is a financial dimension, and I will comment on that. But the other three are the climate dimension (we call it better planet for all), the social dimension (better life for people), and the consumer dimension (better homes for the customer). Today, as we release the financial result. Its almost flat revenue0.9% lower, almost flat, which is 41.5 billion (approximately $47.9 billion). However, whats happening is exactly what we wanted to happen, because our physical visitation is growing, our online visitation is growing, and our [sold] quantities are growing. So basically, [revenue is down] because we have kept low prices. But then we are very happy [about] the underlying business. For us, growth is not a mechanism to pay more dividends to the shareholder. Because we are owned by a foundation. So 85% of the profit remains in the company, and 15% is the dividend to support the charitable activities. . . . We normally say profit gives us resources to keep investing in the future and low price. How are general inflation and other factors affecting your supply chain? The overall supply chain is quite stabilized now. We came from many disruptions in the last year, and that disruption is still happening at the end of this fiscal year, but now it’s quite stable. So we are not increasing prices in general. We constantly hear that physical retail is challenged, or on the brink of collapse. But I noticed Ingka centersyour malls, basicallyhad an influx of new foot traffic this year. I’m curious about your take on large-scale retail right now. People still have the need to socialize. People still have the need to go out. That’s why it’s important that we call it a meeting placenot necessarily a shopping centerand when you visit our meeting place its a way to connect with the communities . . . to create traffic with engagement and food and events. So in a world that is omnichannel and online, people still have the need to socialize. So that’s why we keep seeing more visitors in the shopping center and more visitors in the Ikea physical store. Then what is really important is that the visitor still finds a good value for money. That’s why we dont have too much in discount activity on Black Friday. We are more trying to have everyday low prices. And that’s why we keep investing in that. So somehow customers recognize that, you offer them a fun day out in the meeting place, shopping center, the Ikea store, and then you keep prices low. You know, cost of living is increasing, not only in U.S., but anywhere in the world. The cost of housing is increasing all over the world, so [our] care visionbetter life at home by providing more affordable home furnishingsits not only timeless. Its even more relevant today than some years ago. Now that theyve stabilized a bit, how do you see the impact of tariffs affecting Ikea? I think the entry point is not only tariffs. The entry point is that companies who operate globally, like us, are living in a more complex world, in a more volatile world. Sometimes because of tariffs, sometimes because of currencies, sometimes because of the limitation in global trade or geopolitics. But we need to learn as a company, how can we build the resilience to keep navigating the circumstances? And that’s why we distinguish what is the short term and the long term. And for us, the long term is to build the resilience in the company, and the low cost in the company, that can keep us in the low price agenda. And then, of course, we always try to mitigate the impactnot necessarily when we have to increase prices because of tariffsnormally . . . we try to absorb the impact. But I would say it&8217;s not only tariffs in U.S. There are many reasons why global trade is a bit volatile, but in the long term, we will keep growing. In Europe, in the U.S., in China and India, all over the world. This conversation has been edited for length and clarity.
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Every year, the $463 billion global footwear industry make 20 billion pairs of shoes for just 8 billion humans. Since virtually none of them are recyclable, they will end up clogging up landfills around the world. For decades now, the fashion industry has been on a mission to make products recyclable. But shoes have been a much harder puzzle to crack than clothing. While garments are made from just a handful of materials, shoes are far more complex objects. A sneaker can be made of 50 different materials from foam insoles to leather exteriors to cotton laces, all glued together with adhesives. A handful of brands have prototyped one-off recyclable shoes, like Adidas’s Futurcraft Loop or Nike’s IPSA Link Axis. But the shoe industry is far from recycling at scale. But change is on the horizon. A group of sustainability experts wants to make shoe recycling as widespread as recycling paper or aluminum. Their solution: Radical collaboration among the biggest shoe rivals in the world. Yuly Fuentes-Medel, a fashion sustainability expert who runs MIT’s Climate Project, has just launched The Footwear Collective (TFC), a non-profit devoted to building circular solutions for the footwear industry. She’s convened eight founding shoe companiesincluding Brooks, On, New Balance, and Steve Maddenand is recruiting more. It has also partnered with Goodwill to collect large quantities of shoes at scale. The sustainability teams within these organizations meet with each other on a regular basis to tackle a pipeline of 50 different projects with achievable goals, like working with industrial recyclers to develop the technology to recycle shoes and finding secondary markets for the resulting recycled materials. “The shoe industry is competitive, and these brands are rivals,” says Fuentes-Medel. “But by sharing costs, data, and infrastructure, they can achieve the sustainability goals that have eluded them for years.” [Photo: Footwear Collective] Collaboration is Crucial The fashion industry is one of the biggest polluters in the world. Over the past three decades, fast fashion has driven down the price of both clothing and shoes, allowing consumers to cycle through products quickly. Extracting large quantities of raw materials and shipping them to factories all over the world to turn them into products results in roughly 8% of global carbon emissions, accelerating climate change. For years, the industry has realized that circularity is one solution. Recovering the materials in old shoes and clothes, then transforming them back into materials for the fashion industry would dramatically reduce both waste and carbon emissions. But to achieve this circular system, you need a lot of infrastructure. First, you need to build out large, high-tech factories that can process these materials, and then you need to develop ways of collecting old products from consumers. In the world of clothing, companies like Circ have only just developed the technology to recycle polyester cotton blends, the most common material in the apparel industry, and is now building out factories around the world. But the shoe industry is much farther away from a similar solution. Fuentes-Medel observed that the footwear industry was struggling with this challenge. So in 2023, she hosted a footwear circularity summit at MIT, and was surprised by how much interest there was: Sustainability experts from 45 different shoe brands showed up. As they discussed possible solutions, Fuentes-Medel wrote up a “Footwear Manifesto” that laid out the obstacles to circularity and how to overcome them, such as building markets for recycled materials and ways of collecting old shoes. But one thing was clear from this summit: None of this could happen without collaboration. “This approach makes sense,” says Katherine Petrecca, GM of footwear innovation at New Balance. “We’re working together on pre-competitive spaces. All of us will win if we have the infrastructure to collect and recycle shoes.” After the event, brands were clamoring to continue this work. So Fuentes-Medel launched The Footwear Collective, with eight founding brands who pay dues to fund the project. Sustainability teams within these organizations meet every week with one another, as well as with other companies, to work towards solutions across seven pathways, including getting more value from waste, designing for circularity, and influencing consumer behavior. And together, they have come up with projects to work on, including finding a use for a particular recycled material to creating marketing materials that get consumers excited about recycling shoes. [Photo: Footwear Collective] The Problem of Scale Many footwear brands have been on a mission to become more sustainable. But when a brand is going at it alone, there are many hurdles to achieving goals. “Recycling can only work at scale,” says David Kemp, director of corporate responsibility at Brooks. For one thing, it will require a lot of work to develop the technology to automate the disassembly of shoes at scale, then recover their component materials. “Shoes companies hire teams of engineers to design and develop their products,” says Fuentes-Medel. “You really can’t think of them in the same category as clothing. They have to live up to much higher technical performance standards.” Kemp says that the recycling industry isnot incentivized to invest in developing this kind of high tech recycling facility because there isn’t a big market for the recycled materials that would come out of this process. For footwear brands, this would mean working with their factories to start using recycled foams, and leather, and hardware. “Recyclers are for-profit businesses,” he says. “Through the Collective, we can finally show recyclers that there’s business volume here worth investing in.” A Pilot Program Then, there’s the problem of how you collect large volumes of old shoes to recycle. Some brands, like Brooks, invite customers to bring back their old shoes once they’ve reached the end of their life. But Kemp says that participation in these programs is very low. “Historically, only around 3% of customers bring their shoes back to us,” he says. “This isn’t enough volume to bring to a factory to ask them to develop a recycling program for us.” Again, Fuentes-Medel believes that the solution is to collect shoes from across many brands. And there’s already an organization that is doing this: Goodwill. TFW has decided to work with Goodwill’s California division, since the state has strong Extender Producer Responsibility (ERP) laws which mandate that companies fund and manage the collection, recycling, and reuse of their products. As a result, California can fund more sophisticated recycling operations. With this new project, consumers are invited to drop off shoes from any brand at participating Goodwill locations in California. Shoes that cannot be resold will be sent to three recyclers, where they will be shredded. The shredded material will be separated by weight and density, so they can be sorted by material. (Rubber, foam, and cotton all have different densities.) Then the recycler can determine what materials can be recycled and sold. “We’re aligning with California, since we can help put their legislative policy into practice,” says Petrecca, of New Balance. This is just one of many projects that TFC is working on right now. Other groups are working on changing the way brands design shoes to make them easier to disassemble, without losing any of their performance qualities. “We’re running two offenses,” Petrecca says. “We’re designing for what’s next, but we also need to figure out what to do with the billions of shoes that are already out there.” For Fuentes-Medel, collecting data is crucial throughout all of these early pilots and tests. From all her years immersed in MIT’s quantitative approach to sustainability, she believes it is important to track exactly what happens so that they can measure impact. “We if don’t base our strategy on data, it’ll be just another greenwashing initiative that gets press but changes nothing,” she says. But ultimately, Fuentes-Medel is optimistic that this small but committed collective is building a movement. So as TFW continues to grow and communicate with consumers, it wants to make circularity exciting and tangible, thanks to good storytelling. “Movements are built on joy,” she says. “Collective action depends on everyone feeling motivated to do their little bit, from sending in one pair of shoes to telling one friend.”
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E-Commerce
The newest plaza in Valencia, Spain, has everything one might expect from a public space in a temperate seaside Spanish city. Its five acres contain green space, a playground, ball courts, and walking paths, and the plaza connects to a new market hall, with restaurants and bars serving a wide range of local specialties. Next to all thisand the real reason for any of it existing at allis Roig Arena, the new multipurpose stadium built for the men’s and women’s professional basketball teams of the Valencia Basket Club. The basketball arena is hardly the second thought here, but it’s much more a piece of this broader civic space than the typical pro sports facility. Especially compared to the U.S., where the stadium is often the only element of such a project, Roig Arena and its public amenities offer a refreshing take on a form of urban development that favors the “development” over the “urban.” [Photo: Hufton + Crow Photography] Open since September, the project was designed by the international architecture firm Hok and Valencia-based Erre. With a fluid, scaly facade of precisely angled ceramic tiles, the arena has an unmistakable presence in a neighborhood just outside the center of the city. But because it was sunk down into the ground, the arena is actually much shorter than most of the surrounding neighborhood, softening the unavoidable intrusion of such a big building. There’s room inside for more than 15,000 people during basketball games, and upwards of 20,000 when the venue is used for concerts, which, according to its business plan, represents a large chunk of its calendar. Even more significant is the market hall, which is open every day, even when there’s no basketball game or concert happening. [Photo: Hufton + Crow Photography] In contrast to stadiums in the U.S., Valencia’s was a relative bargain at 400 million, or about $461 million. (The Intuit Dome, the flashy new home of the NBA’s Los Angeles Clippers, for instance, cost more than $2 billion.) The project was financed entirely by Juan Roig, owner of the Valencia Basket Club and majority owner of Spain’s largest supermarket chain, Mercadona. It’s a unique financial arrangement in Spain, where most sports arenas are publicly financed. The Valencia basketball arena’s design was led by Erre partner Amparo Roig, who also happens to be the daughter of Juan Roig. “He wanted to do something important for Valencia and for Spain,” she says. “It was very important to be sustainable economically.” [Photo: Hufton + Crow Photography] More than an arena Making it financially sustainable required focusing on ways the arena could be more than just a sports venue. In the U.S., arenas typically host professional basketball and hockey teams as their anchor users, with concerts and performances as a substantial side business, and fine dining and other concessions adding to the bottom line during events. [Photo: Hufton + Crow Photography] In Spain, hockey is not part of the mix, which meant the arena had to be designed to make concerts and events sit on almost equal footing as basketball games, and have concessions that would actually draw more than just the captured audience of a sports game or concert. One sit-down restaurant in the complex specializes in paella and grilled fish. Another offers croquettes and Valencian flatbreads. “We’re not doing hot dogs here,” Amparo Roig says. [Photo: Hufton + Crow Photography] In other ways, the arena is a typical sports and concert venue, with priority given to spectators’ view lines, easy ingress and egress, and comfort inside the space. Roig took the designer’s prerogative and included more restrooms for women than men. Specially designed piping systems allow beer vendors to operate on the floor level during concerts. “Subtle things like that make sure that it is very much a party building when it’s in party mode,” says John Rhodes, director of sports and entertainment at Hok. The venue also has its share of luxury lounges. But unlike the stuffy, windowless lounges inside most arenas, Roig Arena’s were designed to stretch to the exterior edge of the building, much of which is open to the usually warm air of Valencia. “What we tried to do was actually ensure that the lounges were almost connected with the outside, with this beautiful climate,” Rhodes says. [Photo: Hufton + Crow Photography] An outdoor arrangement That connection to the outside extends throughout the building. Its facade, made of 8,600 ceramic scales, was carefully configured to block the intensity of the sun while still allowing coastal breezes to enter the building. This partially cools the building, cutting down on its energy use. A rooftop solar array also reduces its energy demands. [Photo: Hufton + Crow Photography] The openness of the Valencia basketball arena’s facade raised some concerns from locals. This, after all, is an existing neighborhood; a local school was relocated to create room for the project. As such, the designers focused heavily on community outreach, and on addressing issues that residents raised. The big one was noisea challenge that forced Madrid’s main stadium to cancel concerts after the roar of a Taylor Swift concert spilled out across the surrounding neighborhood. “We made a lot of effort that the sound didn’t go outside, not through the roof and not through the facade,” Roig says. It’s part of the project’s civic gesture. In the end, it’s still a big event venue that will always stick out a bit in a city with thousands of years of history. But among the sports stadiums being built around the world, it does at least try to soften the impact, and possibly add more than it takes. “As a designer, it’s very, very rare that you get to introduce such significant public realm into a heritage city,” Rhodes says.
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