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Ikea cuts prices across hundreds of products in Europe
The Swedish furniture giant will fund the price cuts with a planned €1.2 billion, with discounts reaching up to 28% on some items, while it warned profits may take a hit.
Ikea is cutting prices across hundreds of products in Europe as shoppers face worsening cost-of-living pressures, a move aimed at boosting demand for furniture and home upgrades. BBC Business reports the company has seen revenue decline over the past two years as consumers rein in spending on new furniture and renovations.
The price cuts are expected to cost €1.2 billion, including reductions of up to 28% on certain products. Ikea said it can finance the cuts through savings across its supply chain, such as packaging costs, but acknowledged the changes could reduce profits.
Ikea’s largest franchise operator, Ingka, said the initiative is not a short-term campaign, framing it instead as making Ikea more affordable for customers even if margins fall. The outlet also reports that specific discounts vary by country, including a Kallax shelving unit cut from £60 to £49 and a Billy bookcase reduced by £10 to £25 for British shoppers.
To attract new customers, Ikea is also opening smaller stores in central locations, including London’s Oxford Street and Brighton’s Churchill Square. BBC Business adds that the company launched its own second-hand online marketplace in 2024 as it looks to compete with alternatives like eBay and Facebook Marketplace, even as European consumer confidence remains weak.