Swedish retailer Ikea has committed a combined €1.2bn ($1.38bn) to reduce prices across its European markets.
Effective from 1 September, the initiative covers hundreds of product lines, delivering average price reductions ranging from 15% to 25% on various items.
The extent of the price reductions varies by the national market.
In Germany, more than 1,500 items have had prices cut by an average of 20%, including a 27% reduction for the Bestå television bench and cuts of up to 24% on Ikea 365+ kitchen items.
In the UK, price cuts apply across hundreds of home furnishings and accessories, featuring a 28% drop for the Billy bookcase and a 24% decrease for the Trofast storage combination.
In Italy, hundreds of lines have decreased by an average of 22%, led by reductions of up to 29% on Kallax storage options and an average 26% cut on Bestå frames.
Beyond the European market, retail franchisee Ingka Group is separately deploying €70m to mitigate currency volatility and inflation across North America and Asia.
Ingka Group CEO Juvencio Maeztu said: “Keeping prices low is our long-term commitment and part of our promise to side with the many people. The investment is not an activity or short-term campaign – it is about making Ikea more affordable when people need it most, even if it means accepting a lower margin.”
As part of the move, Inter Ikea Group, which owns and manages the Ikea franchise system, is lowering purchasing prices for franchisees in Europe.
Retail operators across the continent are allocating complementary funding to further reduce final retail prices.
This strategy follows pricing reductions during the 2024 financial year across thousands of items, which helped increase store footfall and overall transaction volumes.
Inter Ikea Group CEO Jakub Jankowski said: “We are committed to making home furnishing products customers need and love more affordable, without compromising on quality, function, sustainability or design.”
The current pricing rollout follows a global workforce reduction in May, when Inter Ikea Group eliminated 850 roles to simplify operations, reduce operating costs, and enable lower end-user pricing.
