Ingka Group implements further price reductions to boost affordability

The company has already slashed prices twice, resulting in increased sales volumes.

Ingka Group, the parent company of IKEA, has initiated another round of price reductions as part of its ongoing strategy to make products more affordable for customers. 

Since the start of fiscal year 2024 last September, the company has already implemented two price cuts, resulting in increased sales volumes.

“This fiscal year for us is the year of lowering prices long-term and becoming even more affordable for our customers. It is not about optimising profits,” said Tolga Öncu, Ingka Retail Manager, Ingka Group (IKEA).

He pointed out that many people are spending less and delaying purchases due to financial challenges with disposable income and living costs.

“For this reason, we decided to further invest in price cuts and navigate with smaller margins,” Öncu noted.

Over 30 IKEA markets globally are passing on savings from the supply chain and operational efficiencies to customers through price reductions. 

The latest round of price cuts will impact various product categories across all Ingka Group markets, making thousands of IKEA products more accessible.

“Considering today’s economy, we are pleased with our customers’ interest in our products and services,” said Öncu. “Our goal remains to bring our prices as close as possible to their pre-pandemic levels and further support our customers going forward.”

In Canada, an additional investment of $58m (CAD80m) has been allocated to reduce prices on over 1,500 products, including popular items, as well as home textiles, cookware, and lighting.

Similarly, in South Korea, approximately 700 products will witness an average price decrease of 13% starting from 1 May, with some items seeing reductions of up to 30%.

Over 150 additional products have also been marked down in France, bringing the total investment in price reductions to $214m (EUR200m) for this fiscal year.

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These price adjustments are part of a broader strategy to enhance affordability and cater to customer needs across Ingka Group markets in Europe, America, and Asia in the coming weeks.

Ingka Group's commercial focus this fiscal year remains on storage solutions, aligned with customer feedback and insights from the Life at Home report. It aims to provide smart storage solutions at affordable prices to help customers declutter their homes.

Additionally, the group is also committed to offering competitive prices on products that promote sustainability and energy efficiency, such as carpets, LED bulbs, and faucets.