Ikea launches €1.2 billion price cuts across Europe to spur sales

Ikea revealed a €1.2 billion investment in price reductions across its European market, targeting consumers squeezed by higher housing expenses. More than 1,500 products in Germany, such as the Poang chair, saw their prices cut, while the UK saw reductions on items like the Kallax shelving unit and Alex drawer. Juvencio Maeztu, chief executive of Ingka, said the cost-of-living squeeze makes affordable home solutions essential.

Jakub Jankowski explained that redesigning the Pax wardrobe line and increasing automation have slashed packaging costs and overall production expenses. The retailer has also opened seven smaller stores since January, moving away from its traditional large-format outlets. Franchise partners in Spain, Turkey, Greece, Iceland and the Baltic states have agreed to implement the same price cuts.