IKEA Lowers Prices Again, "Expanding Reductions in Global Markets"

Swedish furniture company IKEA announced that it is lowering product prices in response to the global easing of inflation and the decline in transportation costs.

Tolga Oncu, Head of Retail Operations at Ingka Group, which operates IKEA Retail, appeared on CNBC Squawk Box on the 11th (local time) and said, "It is the time for companies like IKEA to invest in price rather than profitability," adding, "We are doing so in every market we operate."

He explained that the company has taken measures to reduce product prices in various countries, including Europe, aiming to roll back the price increases made during the soaring inflation in 2022. Ingka Group reportedly spent about 1 billion euros from September to November last year for this purpose. In Canada, 55 million euros were invested in January to readjust the prices of more than 1,500 products, including the popular Billy bookshelf.

Oncu stated that the price reduction measures, which began in Europe in September last year, not only increased in-store sales but also boosted the number of customers. He further emphasized that despite recent geopolitical risks in the Red Sea, "we will keep our promise to continue lowering prices in every country we operate."

This content was produced with the assistance of AI translation services.