Ikea cuts prices on 1,500 products in Europe
The price reductions will cost Inter Ikea Group, Ingka Group which includes almost all Ikea franchises, and the retailer's other European franchises some 1.2 billion euros.
Ikea, the renowned furniture retailer, has announced price reductions on approximately 1,500 products across Europe, effective from September 1st. The cuts, which range from 15% to 28%, aim to attract customers facing rising living costs. This move, initiated by Jakub Jankowski, managing director of Inter Ikea Group, is part of a long-term commitment to lower prices for customers.
Suppliers will not bear the brunt of the price decrease, as it is expected to boost production. However, the price adjustments will result in a cost of roughly 1.2 billion euros (US$1.4 billion) for Inter Ikea Group, Ingka Group, and other European franchises. To counteract inflationary and currency pressures, Ingka Group plans to invest 70 million euros in Asia and North America.
Notable products, such as Billy shelving models, Kallax storage solutions, and kitchen equipment, will see price reductions by up to 28%. Following a rare price increase post-Covid pandemic, Ikea has invested between 2 to 3 billion euros in price reductions since 2023.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
