Ikea invests €1.2 billion in Europe price cuts
Swedish budget furniture retailer Ikea announced a new wave of price cuts as it tries to boost demand in Europe, at a time when the surging cost of housing in many countries has dented people's ability to move and curbed spending on furniture and homeware.
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.
This story
This is one outlet's version. Read the fullest account.
- Ikea cuts prices on 1,500 products in Europe freemalaysiatoday.com
