Ikea cuts prices as customers struggle with rising cost of living
Ikea is implementing significant price cuts across its European product range to support customers facing cost-of-living pressures. The company aims to maintain affordability by optimizing its supply chain, despite the potential impact on profit margins.
Why it matters
This move highlights how major retailers are adjusting their pricing strategies to retain market share during periods of high inflation.
Image source, Getty Images Image caption, Ikea is trying to win new customers by opening high street stores like this one in London
Swedish furniture giant Ikea is cutting prices across hundreds of products in Europe to woo customers struggling with deepening cost-of-living pressures.
Ikea has seen revenue decline over the past two years as the rising cost of living reduces people's ability to invest in new furniture and home renovations.
The company is spending €1.2bn (£1bn) on the price cuts to items including the Billy bookcase and Kallax storage units, with reductions of up to 28% on certain products.
Ikea said it could make the cuts by making savings throughout the supply chain, such as packaging costs, but acknowledged profits may take a hit.
Ingka, the franchisee which operates most of Ikea's European stores, said the cuts were "not an activity or short-term campaign".
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