Overview
- IKEA’s largest franchise owner Ingka Group, Inter IKEA Group and several franchisees pledged a combined €1.2 billion to lower prices on hundreds to thousands of products in Europe.
- The roll‑out began on Tuesday, Sept. 1, 2026, with more than 1,500 items in Germany cut by about 20% and hundreds of products reduced in the UK and Italy by typical ranges of 15% to 29%.
- Ingka Group said it will also invest €70 million to help offset inflation and currency pressures in Asia and North America even though those markets are not part of the main European price program.
- IKEA frames the move as a long‑term affordability strategy that accepts lower margins while funding omnichannel access, smaller urban stores, automation and product redesigns to lower costs.
- The cuts follow years of post‑pandemic price rises and come after two years of declining revenue, building on earlier rounds of price reductions and tests of secondhand and circular offerings.