Since the start of fiscal year 24, which began in September last year, Ingka Group has lowered prices twice and has seen positive effects with a recovery in quantities.
“This fiscal year is for us the year of long-term price decline, to become even more accessible to our customers. It’s not about maximizing profits. At the same time, we see people consuming less and postponing their purchases, as many are still struggling with disposable income and the cost of living. For this reason, we have decided to invest further in reducing prices and navigate with smaller margins,” says Tolga Öncu, Ingka Retail Manager, Ingka Group (IKEA).
More than 30 markets IKEA continues to pass on the savings obtained from the supply chain and from retailer operations to customers, reducing prices. “Considering today’s economic situation, we are pleased with our customers’ interest in our products and services. Our goal remains to bring prices back as close as possible to pre-pandemic levels and to further support our customers,” explains Öncu.
The new price cuts they will cover all sections of the assortment in all markets of the Ingka Group, making thousands of IKEA products of good quality and design even more accessible to many. Which and how many products there are varies from market to market.
Just to give a few examples, in Canada the price of over 1,500 products has been reduced, in South Korea, starting from May 1st, almost 700 products will suffer an average price reduction of 13%. And, again, in France, more than 150 additional products are now priced lower, which brings the total investment in this market to €200 million for this fiscal year. In the next weeks, Similar price reductions will be applied across European, American and Asian markets.
There Storage remains the focus of commercial attention in the current fiscal year. Thanks to customer feedback and the Life at Home report, the retailer realizes that many are looking for smart storage solutions and the ability to declutter their homes at an affordable price.
The company is also committed to offering the lowest possible price on products that allow customers to save on bills and to have a more sustainable life at home, such as LED bulbs, taps, etc.
“In times of economic crisis, more and more people are turning to IKEA and we see that our market share is growing in many markets. Becoming even more accessible with our products without compromising quality, form, functionality and sustainability, we believe is a way to go,” adds Öncu.
