Ikea is looking to make home furnishing more affordable, as many people continue to feel pressure from higher living costs, with a cost-cutting initiative across Europe.
In the UK, prices will be reduced on hundreds of home furnishing products and accessories. The price of the iconic BILLY bookcase will drop by 28 per cent, and the cost of the TROFAST storage combination will be lowered by 24 per cent.
In Germany, more than 1,500 products will have their prices lowered by an average of 20 per cent, while in Italy prices have been reduced by 22 per cent.
“Keeping prices low is our long-term commitment and part of our promise to side with the many people. 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,” said Juvencio Maeztu, CEO of Ingka Group.
“At the same time, we are investing to make Ikea more accessible by opening many smaller stores as part of our omnichannel experience. What is unique about Ikea is that even while we reduce prices, quality, design, functionality, and sustainability keep increasing. This is what we call Democratic Design, and it is what enables us to offer the best value for money.”
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The price reductions follow the investment made in FY24, when prices were lowered across Ikea markets for thousands of products. That investment helped more people access Ikea items and contributed to increased visitation as well as a higher number of orders.
To support affordability beyond Europe, Ingka Group will also invest €70 million to help offset inflationary and currency pressures in Asia and North America, helping keep prices as low as possible for customers.
In August, Ikea announced its plans to launch its own second-hand marketplace in the UK later this year, allowing shoppers to buy and sell pre-owned furniture directly from one another.
The peer-to-peer platform will be open to Ikea Family members and will connect buyers and sellers locally.
It follows Ikea’s testing of its resale proposition in Madrid and Oslo, before expanding the service further across Europe. By January this year, its second-hand marketplace was operating in Spain, Norway, Portugal, Poland and Sweden.
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