Ikea is planning to slash prices in 2024 at all of its stores across the globe.
The company is aiming to cut prices after prices went up in 2022, CNBC reported. This is due to the cost of transportation and raw materials going down.
“We recently re-introduced New Lower Price, a price reduction on hundreds of our customers’ favorite IKEA products, with plans to continue lowering prices on hundreds more products in the coming months,” Ikea said in an emailed statement to USA Today.
The company said that it’s seen more customers and sales after it dropped prices last September in Europe. With that success, Ikea decided to branch out to all of its markets, the company said, according to WPIX.
“It’s more affordable than ever to give every room a stylish makeover with HUNDREDS of reduced prices! From design and production to packaging and transportation, we strive to cut costs and lower prices without compromising quality. “New lower price” means we’ve found a way to offer your favorite product for less. From storage to furniture, don’t miss these New lower prices,” Ikea said on its website.
Tolga Öncü, head of retail at Inkga Group, one of the owners of Ikea, said in a news release earlier this year that the company was hoping to lower prices due to “continued economic developments,” USA Today reported.
“In January and over the coming three months, the company is increasing its investment in price reductions. This will affect all sections of its range, making thousands of products of good quality and design even more affordable for the many,” the news release said.
“We are doing it in all the markets where we operate,” Öncü told CNBC earlier this week. “This is the moment for companies like Ikea to invest in pricing rather than profitability.” Öncü also said that a lot of consumers now have “thinner wallets.”