Ikea announces second global price cut for the year

DELFT, Netherlands – Ikea’s parent company, Ingka Group, has announced its second global price cut for the year.

“This fiscal year for us is the year of lowering prices long-term and becoming even more affordable for our customers,” said Tolga Öncu, Ingka retail manager. “It is not about optimizing profits. At the same time, we see that people consume less and postpone their purchases as many still struggle with disposable income and cost of living. For this reason, we decided to further invest in price cuts and navigate with smaller margins.”

The cuts will affect all sections across all Ingka Group markets and include thousands of products, Ingka said. It gave some examples:

  • In Canada, $80 million is being invested to cut prices for 1,500 products, including, for example, the Kallax bookshelf series, the Malm bedframe as well as items in home textiles, cookware, and lighting.
  • In South Korea, beginning May 1, around 700 products had their prices decreased by 13% on average. Some products fell by as much as 30% – for example, the LED table lamp Storhaga.
  • In France, around 150 additional products are now priced lower. Some examples include the Brimnes chest of drawers, with its price reduced by 17%, and the Visthus wardrobe, with a 13% price cut.

“Similar” price reductions will be rolled out across markets in Europe, America, and Asia over the coming weeks, the company said.

In January, the company also cut prices, citing a “goal is to restore prices long term and reach their inflation-adjusted pre-pandemic levels by the end of next year.” Those reductions included a 20% drop across 2,000 products in Germany; “hundreds” of products dropping 20% in India; and similar reductions in Canada, Portugal, Japan and Switzerland.

“Our approach this year is to navigate with thinner margins to provide support to people,” said Öncu. “At the same time, Ikea tends to gain market share when consumers face financial pressure. This was the case last year when we globally grew to a record 6% market share.”

See also:

  • EV stations are the latest way Ikea expands environmental impact
  • Ikea doubles up in North Carolina metro market, adding new smaller format store

The post Ikea announces second global price cut for the year appeared first on Furniture Today.