Ikea cuts Europe prices on 1,500 products

Ikea said Tuesday it was cutting prices by up to 28 percent on around 1,500 products in Europe from September 1, as the furniture group seeks to attract customers facing higher living costs.

Jakub Jankowski, managing director of Inter Ikea Group, said there was a long-term commitment to lower prices for customers. He said suppliers would not face cost pressure because of the cuts.

Jankowski said the price reductions would cost Inter Ikea Group, Ingka Group, which includes almost all Ikea franchises, and other European franchises about 1.2 billion euros, or $1.4 billion.

Ingka Group said the change would apply to around 900 products in each market. It will also invest 70 million euros to offset inflationary and currency pressures in Asia and North America.

Across Europe, prices of some popular Ikea products, including some Billy shelving models, Kallax storage products and kitchen equipment, will be reduced by 15 to 28 percent.

Juvencio Maeztu, chief executive of Ingka Group, said the selection of products and the scale of reductions would vary slightly by market.

Ikea announced a rare price increase after the Covid pandemic, but since 2023 the Swedish flatpack group has invested between two billion and three billion euros in lowering prices by 10 percent.