A combined investment by Inter IKEA Group and its European franchisees aims to ease pressure on consumers facing higher living costs, with selected products seeing price reductions of up to 25%.
With many consumers continuing to face pressure from higher living costs, IKEA is stepping up efforts to make its products more affordable across Europe.
From 1 Sep, customers in the region will see price reductions of up to 25% on a range of selected products.
As part of the initiative, Inter IKEA Group is reducing its purchasing prices for IKEA franchisees in Europe, while retailers across the region are making additional investments to lower prices for customers. Together, the measures represent an investment of about €1.2bn in lower prices.
“Low price is at the heart of the IKEA vision to create a better everyday life for the many people. We are committed to making home furnishing products customers need and love more affordable, without compromising on quality, function, sustainability or design. Good design should not be a luxury,” said Jakub Jankowski, CEO of Inter IKEA Group.
Affordability is also being addressed through efforts to improve efficiency across the IKEA value chain, Jankowski said.
“Through continuous business improvements, we create efficiencies to lower our costs and pass more value on to customers,” he said. “This combination of price reductions and value chain development is an important part of how we contribute to a better everyday life for the many people.”
The price reductions are focused on Europe, where IKEA says its value chain is well positioned to create an impact at scale.
The region’s supply chain also provides opportunities to test and develop measures aimed at delivering greater value to customers, the company said.
All IKEA franchisees in Europe have committed to lowering prices. However, the products covered, timing and scale of the reductions will vary by market, with individual franchisees making their own decisions.
