The decision to move the business was taken by Ikea's managing director, Peter Hogsted, who is understood to have handed the account to Danish agency RBLM. The new agency will work on a project basis, beginning with a campaign to be launched in this autumn.
Ikea attracted more than 300 million customers last year. It commands a 20 per cent market share in its home country of Sweden, with sales in Germany accounting for one-fifth of its total turnover.
The outdoor campaign, which broke in September 2004 and called for people to "boycott Ikea", was so successful it was pulled after riots broke out at the opening of its Edmonton store during which several customers were taken to hospital.