IKEA to cut prices on 1.500 products in Germany in September

Swedish furniture retailer IKEA plans to slash the prices of more than 1,500 products across Europe in September, aiming to attract customers grappling with the rising cost of living, according to a Reuters report. The company has earmarked an investment of 1.2 billion euros for the price reductions, as declining consumer confidence has adversely affected its revenue for the past two years.

Juvencio Maeztu, CEO of Ingka, IKEA's holding company based in the Netherlands, highlighted the impact of Europe's affordable housing crisis, noting that many customers now seek storage and organizational solutions, especially in shared living arrangements.

Maeztu also revealed that IKEA is redesigning certain products and packaging to cut production costs. Jakub Jankowski, CEO of Inter IKEA, an IKEA holding company in the Netherlands, emphasized the brand's commitment to optimizing costs by reimagining products from the ground up. For instance, production costs for the Pax wardrobe line have already been reduced by 70 percent.

In Germany, the price cuts will apply to popular items such as the Poang chair, which will drop from 179 euros to 119 euros, the Bestå TV bench, and IKEA 365+ kitchen products. In the United Kingdom, the Kallax shelf price will be reduced from £60 to £49, while Alex drawers will be discounted from £70 to £55. IKEA's cost-cutting measures come amid increasing consumer concerns over the escalating cost of living.