IKEA Announces Fresh Price Cuts Across Europe to Boost Furniture Demand
Swedish budget furniture retailer IKEA has announced a new wave of price cuts across Europe as it seeks to revive demand amid rising housing costs and a broader cost-of-living squeeze. The company said it is investing a total of €1.2 billion ($1.39 billion) in price reductions after two consecutive years of declining revenue, aiming to attract budget-conscious shoppers and drive sales.
Germany, IKEA’s largest market by revenue, has seen price reductions on more than 1,500 products, including the Poäng chair, which has been cut to €119 from €179. In Britain, the Kallax shelving unit has fallen to £49 from £60, while the Alex drawer unit is now priced at £55, down from £70. IKEA executives said product redesigns, greater automation, renewable energy and lower packaging costs are helping the retailer reduce expenses.
The company is also adapting its retail strategy by opening smaller stores across Europe, moving beyond its traditional large out-of-town outlets. Since January, seven smaller stores have opened across the region. IKEA said several franchisees in countries including Turkey, Greece, Cyprus, Bulgaria, Iceland, Estonia, Latvia and Lithuania have also agreed to implement price cuts as the retailer responds to changing consumer spending patterns.
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