Status: 14.01.2024, 12:58 p.m.
By: Julia Hanigk, Kilian Bäuml
CommentsPrint Share
After a worldwide price increase, Ikea is now announcing massive price cuts. Around 20 percent of the range will be cheaper this year.
Munich – Surprisingly, the Swedish furniture store Ikea has announced price cuts in Germany. As recently as 2022, Ikea had significantly increased its prices worldwide, by an average of nine percent. Jesper Brodin, the CEO of Ikea, commented on this to the German Press Agency (dpa) with the words: "We could see in all markets that people had less money in their wallets. Globally, we have never seen such a drop in demand."
Now a U-turn seems to be taking place. The situation is stabilizing and inexpensive items are particularly sought after. The Ikea boss added: "After the cost increases in recent years, we are experiencing massive deflation. Raw material, energy and transport prices are falling. We want to pass this on to our customers."
At Ikea, the prices of around 2000 products are to be reduced, which corresponds to about 20 percent of the entire range. (Symbolic photo) © Manfred Segerer/Imago
Ikea lowers prices at 20 percent of the range: 2000 products will be cheaper
Brodin explains that the price reductions are intended to attract more customers to the stores. Last year, the price of the Billy shelf at Ikea was already reduced. Compared to other companies, Ikea is in a strong position: The Association of the German Furniture Industry forecasts a drop in sales of five to seven percent for 2023, while Ikea Germany reports record sales of 2022.2023 billion euros for the 6/4 financial year. The number of visitors rose by about 11 percent to 81.8 million.
These 81.8 million people can be particularly happy in 2024, because a total of 2,000 products are to be permanently reduced in price. According to the furniture store, this corresponds to 20 percent of the entire range. Fortunately, some items are even being offered at the same price or cheaper than before the pandemic and the Ukraine crisis. According to the company's own statements, this will cost the group a mid-three-digit million amount. (jh/dpa)
The editor wrote this article and then used an AI language model for optimization at their own discretion. All information has been carefully verified. Learn more about our AI principles here.