Ikea Group has appointed Peter Agnefjäll as president and chief executive to replace Mikael Ohlsson, who will step down next September after 34 years with the retailer.

Agnefjäll is currently country manager of Sweden and has held a variety of roles at the business, including in range development and as a store manager in Italy, since joining in 1995. He will spend the next year working with Ohlsson before taking over on September 1, 2013.

Göran Grosskopf, chairman of Ikea parent company Ingka Holding BV, said: “Ikea has had a strong development under the leadership Mikael, despite the tough economic environment. The current Ikea business direction, which covers the years until 2020, remains in place.”

“Peter will continue to build on Mikael’s accomplishments and the solid introduction will allow him to prepare in the best possible way.”

Ohlsson intends to hold a variety of board positions and organisations, and spend more time with his family following his departure.