Strategic consequences of retail acquisition: IKEA and Habitat

Takes an historical perspective, considering the events leading to the sale of Habitat by the Storehouse group to the Swedish furniture retailer IKEA in October 1992. Focuses on the strategic issues involved in the acquisition of an international retailer by a retail organisation that is truly global in its operation. Describes the development of both retailers (with particular emphasis on their international development) and a description of the terms of the sale. Areas for further discussion and analysis arising from the case can include: the future development of Habitat within the global strategic framework laid down by IKEA; analysis of the motives of Storehouse in disposing of Habitat, including the future development of a smaller Storehouse; and issues relating to market segmentation and positioning, with specific reference to retail brands.