Ikea is investing in price cuts on some products across a number of counties as they aim to unwind increases first introduced in 2022.
The countries impacted by the price cuts include Belgium, Canada and India.
The main Ikea retailer Ingka group has said it has cut costs and sees decreasing raw material prices. These factors have enabled the furniture retailer to bring down prices on some products in an effort to boost sales volumes.
Ikea has already announced price cuts in its biggest market – Germany – as well as in Sweden and the UK.
According to Tolga Oncu – Inkga retail manager – Ikea is already selling higher volumes of products with cut prices.
“Every country is sitting and looking at where are the opportunities for us to, by lowering the prices, sell more pieces,” he said. “When you lower the price you also need to see a volume increase.”
Ingka group said the aim is to bring prices back to “inflation-adjusted” pre-pandemic levels by the end of next year.
For example, in the United States Ikea’s billy bookcase cost $69 in 2016. This fell to $59 in 2019 and increased to $89 by 2022. It is now back at $69.
Ingka group is investing €55 million to cut prices in Canada on more than 1,500 products. In Belgium, it is lowering prices on 2,600 products from 1 February.
Ingka group also plan to cut prices on hundreds of items in their Indian Ikea stores.
The group have invested more than €1 billion in price reductions across its markets from September to November.
Red Sea disruptions, which have pushed up shipping rates, are unlikely to impact Ikea’s price cutting plan, according to Oncu.
“So far when it comes to the Red Sea disruptions, with the facts we know today it is not impacting the pricing direction that we have in Ikea,” he said.
Ingka Group is the main global franchisee of Ikea, The brand is owned by a separate company, Inter Ikea, which manufactures all Ikea products.