IKEA is slashing prices on various products in countries like Belgium, Canada, and India to reverse 2022 increases. Cost decreases and lower raw material prices are driving this initiative to boost sales. The aim is to restore prices to pre-pandemic levels. Despite global shipping disruptions, this strategy remains unaffected. Ingka Group is the primary global franchisee of IKEA.
IKEA is investing in price cuts on some products across a range of countries, including Belgium, Canada and India, as the furniture retailer aims to unwind increases it introduced in 2022.
The main IKEA retailer said it has cut costs and sees decreasing raw material prices, enabling it to bring prices down on some products, which will in turn boost sales volumes.
“Every country is sitting and looking at where are the opportunities for us to, by lowering the prices, sell more pieces,” said Tolga Oncu, Ingka Retail Manager at Ingka Group, the biggest owner of IKEA stores. “When you lower the price you also need to see a volume increase.”
IKEA is already selling more of the cut-price products, like KALLAX storage cubes, in some countries, Oncu said.
The aim is to bring prices back to “inflation-adjusted” pre-pandemic levels by the end of next year, Ingka Group said.
Ingka Group is investing 55 million euros ($59.53 million) to cut prices in Canada on more than 1,500 products, while in Belgium it is lowering prices on 2,600 products from February 1. It also plans price cuts in India on hundreds of products.
In the United States, for example, IKEA’s BILLY bookcase cost $69 in 2016. The price fell to
$59 in 2019 and increased to $89 by 2022, and is now back at $69.
The retailer has already announced price cuts in Germany – its biggest market by sales – as well as Sweden and the UK.
Ingka Group has invested more than 1 billion euros in price reductions across its markets from September to November.
Red Sea disruptions to global freight, which have pushed up shipping rates, are unlikely to impact IKEA’s plans to cut prices, Oncu said.
“So far when it comes to the Red Sea disruptions, with the facts we know today it is not impacting the pricing direction that we have at IKEA.”
Ingka Group is the main global franchisee of IKEA. The brand is owned by a separate company, Inter IKEA, which manufactures all IKEA products.
In a bold move aimed at stimulating sales and capturing market share, IKEA has implemented a strategic pricing overhaul. The Swedish furniture giant, known for its stylish yet affordable offerings, has slashed prices on a wide range of products, signaling a paradigm shift in its sales tactics. This decision comes in the wake of a challenging economic landscape and evolving consumer behavior, where affordability and value-driven choices have become paramount. By proactively reducing prices, IKEA seeks to attract budget-conscious customers, foster brand loyalty, and ultimately, propel sales growth. The impact of these price cuts goes beyond immediate sales figures, paving the way for a reinvigorated brand perception and increased market competitiveness. Through this calculated strategy, IKEA aims to not only weather the storm of economic uncertainty but also emerge as a frontrunner in the ever-changing retail landscape. As the industry continues to navigate unforeseen challenges, IKEA’s innovative pricing approach sets a precedent for brands aiming to revitalize their sales performance in an increasingly dynamic environment.
Source: ARY NEWS
IKEA is investing in price cuts to boost sales in various countries. The retailer aims to bring prices back to pre-pandemic levels by the end of next year. With decreasing raw material prices, IKEA has already cut costs and is selling more cut-price products in multiple countries. Ingka Group is investing in price reductions across its markets, with plans to lower prices on thousands of products. Despite global freight disruptions, IKEA’s pricing direction remains unchanged. This initiative is led by Ingka Group, the main global franchisee of IKEA, as it aims to provide affordable products to its customers.
Disclaimer:
This content is AI-generated using IFTTT AI Content Creator. While we strive for accuracy, it’s a tool for rapid updates. We’re committed to filtering information, not reproducing or endorsing misinformation. – Khabristan.pk for more information visit privacy policy
Leave a Comment