Ingka Group Introduces New Wave of Price Cuts for Customers

April 30, 2024  by HFBusiness Staff in Business Strategy, Industry   

The founder of IKEA Ingvar Kamprad had a dream about furnishing and supporting people to create a better home, no matter the size of the wallet. Since the beginning of FY24, which started in September last year, Ingka Group has lowered prices twice, and it has seen positive effects with quantities picking up.

“This fiscal year for us is the year of lowering prices long-term and becoming even more affordable for our customers. It is not about optimizing profits. At the same time, we see that people consume less and postpone their purchases as many still struggle with disposable income and cost of living. For this reason, we decided to further invest in price cuts and navigate with smaller margins,” says Tolga Öncu, Ingka retail manager, Ingka Group (IKEA).

More than 30 IKEA markets keep passing on the savings from the supply chain as well as from the retailer’s operations into lowering prices to the customers.

“Considering today’s economy, we are pleased with our customers’ interest in our products and services. Our goal remains to bring our prices as close as possible to their pre-pandemic levels and further support our customers going forward,” explains Öncu.

The newest price cuts will affect all sections of the range across all Ingka Group markets, making thousands of IKEA products of good quality and design even more affordable for the many. Which and how many products it is varies from market to market. A few examples:

• In Canada, an additional CAD 80 million is being invested to cut prices for more than 1,500 products, including, for example, the iconic KALLAX bookshelf series, the MALM bedframe as well as items from home textiles, cookware, and lighting.
• In South Korea, from May 1, close to 700 products will have their price decreased by 13% on average. Some products by as much as 30% – for example, the LED table lamp STORHAGA.
• In France more than 150 additional products are now lower priced, which brings the total investment in this market so far this fiscal year to EUR 200 million. Some examples include the BRIMNES chest of drawers, with its price reduced by 17%, and the VISTHUS wardrobe, with a 13% price cut.
• Similar price reductions will be rolled out across markets in Europe, America, and Asia over the coming weeks.

Storage remains in the commercial focus during this fiscal year. Through customer feedback and the Life at Home report the retailer sees that the many particularly seek smart storage solutions and ability to declutter their homes at an affordable price.

The company also strives to offer the lowest possible price on products that allow customers to save money on their bills and have a more sustainable life at home. This includes carpets – which are already lower-priced in many markets – as well as LED bulbs, faucets, and other products that help save energy and water.

“More people turn to IKEA in economically challenging times, and we see that our market share is growing in many markets. Becoming even more affordable with our products without compromising on quality, form, function, and sustainability, we believe, is a way forward for us,” adds Öncu.

As it sides with the many people, the retailer’s purpose remains a strong as ever – to cater for the dreams, needs and frustrations people have in life at home.