IKEA is reducing prices on 1,500-plus products in Europe amid ongoing cost-of-living pressures.
The Swedish furniture retailer announced Tuesday (Sept. 1) that it was investing nearly $1.4 billion to mark down prices by 15% to 25%.
“The investment is not an activity or short-term campaign—it’s about making IKEA more affordable when people need it most, even if it means accepting a lower margin,” Juvencio Maeztu, CEO of Ingka Group, which owns most of the world’s IKEAs, said in a news release.“At the same time, we are investing to make IKEA more accessible by opening many smaller stores as part of our omnichannel experience.”
The discounts include markdowns of an average of 20% on more than 1,500 products in Germany, as well as hundreds of products in the U.K. Prices in Italy have been lowered by an average of 22% on hundreds of products.
IKEA noted that these reductions follow a similar campaign during its 2024 fiscal year, which the company said helped more people access its products, helping drive more foot traffic and a higher number of orders.
“To support affordability beyond Europe, Ingka Group will also invest 70 million euros to help offset inflationary and currency pressures in Asia and North America, helping keep prices as low as possible for customers,” the release added.
Meanwhile, IKEA said last month that it plans to launch an on\line marketplace in the United Kingdom where consumers can buy and sell pre-owned IKEA products.
“With the launch of IKEA second-hand marketplace in the U.K., we’re taking a meaningful step toward creating a destination that simplifies access to pre-owned IKEA furniture,” an IKEA spokesperson said in the company’s announcement.
The company’s new price reductions come as several other retailers are instituting markdowns to attract cost conscious consumers.
For example, off-price clothing retailer Burlington said on its earnings call last week that it would lower prices using its government refunds from the tariff payments the company had made.
“It feels like the right thing to do for our customers,” CEO Michael O’Sullivan said on the call. “Over the last few years, many households, especially moderate- to lower-income families, have struggled with the higher cost of living — higher prices on essentials like groceries, rent, gas prices, etc. So our goal is to use the tariff refunds to give our customers a break.”
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