IKEA Expands Global Price Cuts Amid Easing Inflation

The Swedish furniture giant aims to roll back prices to pre-pandemic levels by the end of 2025, leveraging decreased costs for transportation and raw materials.

IKEA, under Ingka Group, is reducing prices worldwide, with significant cuts already in Europe and plans for more in the U.S.
The price reduction strategy, initiated in September 2023, is driven by cooling inflation and lower raw material costs.
Between September and November 2023, Ingka Group invested over €1 billion ($1.1 billion) in price cuts across its markets.
The company has seen an increase in customer traffic and items per basket following the price cuts.
IKEA aims to restore its prices to inflation-adjusted pre-pandemic levels by the end of 2025, despite potential geopolitical risks in the Red Sea.