IKEA is lowering prices on select products in various countries, reversing 2022 hikes. This decision follows reduced costs and declining raw material prices, aiming to increase sales.
“Lowering prices should lead to more sales,” stated Tolga Oncu, Ingka Retail Manager at Ingka Group, IKEA’s largest store owner. This strategy has already boosted sales of items like KALLAX storage cubes.
The goal is to reach pre-pandemic prices, adjusted for inflation, by the end of next year. Ingka Group’s investment includes a 55 million euro reduction in Canada across 1,500 products and price cuts on 2,600 items in Belgium starting February 1. Similar reductions are planned in India.
In the U.S., for instance, the BILLY bookcase price fluctuated from $69 in 2016 to $89 in 2022 and has now returned to $69. Price cuts are also underway in Germany, Sweden, and the UK, IKEA’s major markets.
Ingka Group dedicated over 1 billion euros to price reductions globally from September to November. Despite potential disruptions from Red Sea freight issues, Oncu assures these won’t affect IKEA’s pricing strategy.
Ingka Group, as IKEA’s primary global franchisee, operates separately from Inter IKEA, the brand owner and product manufacturer.
