“For us, this fiscal year is a year of long-term price reductions, with the goal of making our products more affordable,” said Retail Manager Toga Oncu. “This is not about optimizing profits. At the same time, we have seen a decrease in consumer spending and delayed purchasing decisions due to many people struggling with disposable income and living costs. Therefore, we have decided to further invest in price reductions and operate with smaller profit margins.”
IKEA Group stated that this price reduction will involve all market sectors, including thousands of products. They provided some examples: in Canada, $80 million will be invested to lower the prices of 1,500 products, including the Kallax shelving series, Malm bed frames, as well as home textiles, cookware, and lighting supplies. In South Korea, starting from May 1st, the prices of approximately 700 products have been reduced by an average of 13%. Some products have seen reductions of up to 30%, such as the LED desk lamp Storhaga. In France, around 150 products now have lower prices. Examples include a 17% price reduction for the Brimnes wardrobe and a 13% reduction for the Visthus wardrobe. The company stated that in the coming weeks, they will introduce similar price reduction measures in major markets across Europe, Americas, and Asia.
In January of this year, the company implemented price reductions with the goal of “long-term recovery of prices and reaching pre-pandemic inflated levels by the end of next year.” These measures included a 20% price reduction for 2,000 products in Germany, a 20% reduction for “hundreds” of products in India, and similar reductions in Canada, Portugal, Japan, and Switzerland.
“Our strategy this year is to provide support with thinner profit margins,” said Oncu. “At the same time, IKEA tends to gain market share when consumers face financial pressure. This was the case last year when our global market share grew to a record 6%.”
