Ikea cuts prices in Europe to attract cost-conscious customers

Swedish furniture retailer Ikea is cutting prices across a range of popular products in Europe, including the Billy bookcase and Kallax storage units, to attract cash-strapped customers. The company is spending €1.2bn (£1bn) on price reductions of up to 28% on certain items. Ikea said the cuts are made possible by savings throughout its supply chain, such as packaging costs. Ingka, the franchisee operating most European stores, emphasized this is not a short-term campaign but a commitment to affordability. CEO Juvencio Maeztu stated, 'It's about making IKEA more affordable when people need it most, even if it means accepting a lower margin.' The price cuts vary by country; for example, in the UK, the Kallax shelving unit drops from £60 to £49, and the Billy bookcase is reduced by £10 to £25. Ikea has seen revenue decline over the past two years due to the rising cost of living. The company is also opening smaller central stores and launched a second-hand marketplace in 2024. Consumer confidence in Europe is at a three-year low, though British consumers are becoming more optimistic.