Ikea slashing prices on hundreds of items

Lower overhead, higher efficiency cited in move

If you’re looking for a good deal on furniture, you may be in luck.

Swedish home and furniture company Ikea announced this week it has been cutting prices on products available across a number of countries – and is planning to further expand its price cuts in 2024.

“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.

In a late-January news release, Tolga Öncu, head of retail at Inkga Group, the biggest owner of Ikea stores, attributed the lower prices to “positive economic developments and the decreasing prices of raw materials in the supply chain.”

Öncu also stated the company has been focused a lot on “reducing operational costs and improving efficiency” and that as a result, Inkga Group would be passing on the savings to its customers.

Price reductions over the coming three months “will make thousands of products of good quality and design even more affordable for the many,” according to the news release.

Öncu said the company’s goal is to “restore prices long term and reach their inflation-adjusted pre-pandemic levels by the end of next year.”

The price cuts, which started in Europe in September, have led to an increase in customers, as well as an increase in items sold, Öncu told CNBC.

“This is the moment for companies like Ikea to invest in pricing rather than profitability,” Öncu told CNBC, adding that a lot of people now have “thinner wallets.”

Ingka Group did not immediately respond to a USA TODAY request for comment.

According to Reuters, Ingka Group has invested more than $1.1billion in price cuts across markets it operates in between September and November 2023.

Ingka Group has Ikea retail operations in 31 markets and represents about 90% of Ikea retail sales.

USA TODAY