28 October 1958, under the name Möbel-IKÉA (möbel meaning "furniture" in Swedish). IKEA is an acronym standing for Ingvar Kamprad, the founder's name; Elmtaryd, the farm where he was born; and the nearby village of Agunnaryd where he was raised.

The first stores outside Sweden were opened in Norway (1963) and Denmark (1969). The stores spread to other parts of Europe in the 1970s, with the first store outside Scandinavia opening