This strategy worked well until 1985 when IKEA decided to enter the North American market. Between 1985and 1996 IKEA opened six stores in North America, but unlike the company’s experience across Europe, the stores did not quickly become profitable. As early as 1990, it was clear that IKEA’s North American operations were in trouble. Part of the problem was an adverse movement in exchange rates. In 1985 the exchange rate was $1 = 8.6 Swedish kronar; by 1990 it was $1 = 5.8 Swedish kronar. At this exchange rate, many products imported from Sweden did not look inexpensive to American consumers.