IKEA is spending $1.4 billion to cut prices, joining Walmart and Target in a race to win back shoppers
The Swedish retailer joins a growing list of companies lowering prices to help cash-strapped consumers
IKEA, the world's largest furniture retailer, is investing $1.4 billion to reduce prices across Europe in an effort to win back cost-conscious shoppers. The Swedish company cites higher living costs and a record inflation rate of 9.2% in the Euro area in 2022, which has driven up furniture prices by around 24% since 2015. IKEA plans to cut prices by an average of 15% to 25% on a range of items including home furnishings, kitchen products and storage bins.
The cuts come as demand remains weak and with European consumer confidence near three-year lows. IKEA's largest franchisee, Ingka Group CEO Juvencio Maeztu, said the price cuts reflect the company's long-term commitment to affordability. This move follows years of rising prices and follows a similar strategy by Walmart and Target in the United States.
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