In an effort to make their furniture more affordable, IKEA is slashing prices on various items across countries like Belgium, Canada, and India. The company, known for its home furnishings, has identified cost savings and a decline in raw material prices, allowing them to roll back increases introduced in 2022. Ingka Group, the largest owner of IKEA stores, aims to boost sales volumes by offering price cuts.
Ingka Retail Manager Tolga Oncu stated that each country is exploring opportunities to sell more products by lowering prices, with the strategy of increasing sales volumes when prices are reduced. Some of the products already benefiting from these price cuts include popular items like the KALLAX storage cubes.
The overarching goal is to bring prices back to “inflation-adjusted” pre-pandemic levels by the end of the next year, according to Ingka Group. The company is investing 55 million euros ($59.53 million) to reduce prices on over 1,500 products in Canada and plans to lower prices on 2,600 products in Belgium starting from February 1. Similar initiatives are in the pipeline for price reductions on hundreds of products in India.
This move follows IKEA’s announcement of price cuts in major markets like Germany, Sweden, and the UK. The company is determined to make their products more accessible, and Ingka Group has already invested over 1 billion euros in price reductions across its markets from September to November.
Despite disruptions in global freight, particularly in the Red Sea, which have led to increased shipping rates, IKEA remains confident that these challenges will not affect their plans to cut prices. Tolga Oncu assured that, based on current information, the Red Sea disruptions are not impacting IKEA’s pricing strategy.
As the main global franchisee of IKEA, Ingka Group is taking significant steps to make IKEA products more budget-friendly for customers across the globe.
