Ingka Group, the largest IKEA retailer, has initiated a new wave of price cuts for a range of products in countries including Belgium, Canada and India.
The investment, IKEA’s second in five months, will begin in January 2024 and continue over the following three months.
The extent of the price cuts will vary by market, subject to local economic factors such as inflation and currency fluctuations.
In Germany, IKEA slashed prices for one-fifth of its product range, amounting to 2,000 items, by an average of 20%.
This includes popular product families such as SÖDERHAMN sofas, KALLAX shelves, and the BRIMNES series for bedrooms and living rooms.
In Sweden, the company has made price reductions on more than one quarter of the product range, equating to 2,500 items, and in Canada an investment of €55m is facilitating price cuts for more than 1,500 products, including the iconic BILLY bookcase with glass doors, now 20% cheaper.
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In Belgium, the furniture retailer plans to reduce prices for 2,600 products from 1 February and drop parcel delivery costs to €2.99.
In India it plans to reduce the price of hundreds of products by 20%.
Product prices in markets such as Portugal, Japan and Switzerland have also been reduced, with more to follow.
Ingka Group retail manager Tolga Öncu said: ““Our goal is to restore prices long-term and reach their inflation-adjusted pre-pandemic levels by the end of next year. This is the most important job at IKEA right now and going forward we want to lead with price decreases and set an example.
“Our approach this year is to navigate with thinner margins to provide support to people. It is not to optimise profits. 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. Becoming even more affordable with our products without compromising on quality, form, function and sustainability, we believe, is also a way to continue this growth trend.”
In December 2023, IKEA invested more than £35m ($44.28m) in the financial well-being of its employees in the UK.