Ingka Group, the largest IKEA retailer, other IKEA franchisees, and Inter IKEA Group are investing €1.2b in lowering prices across Europe – with £54m invested in the UK, where the retailer says it has slashed the prices of 435 of its products by up to 25%, with reductions made across favourites including the Billy bookcase, Hemnes daybed and Poäng armchair.
IKEA says it has taken this step to make home furnishing more affordable as many people continue to feel pressure from higher living costs.
“Keeping prices low is our long-term commitment and part of our promise to side with the many people,” says Juvencio Maeztu, CEO of Ingka Group | IKEA. “The investment is not an activity or short-term campaign – it’s about making IKEA more affordable when people need it most, even if it means accepting a lower margin. At the same time, we are investing to make IKEA more accessible by opening many smaller stores as part of our omnichannel experience.”
“What is unique about IKEA, is that even while we reduce prices, quality, design, functionality, and sustainability keep increasing. This is what we call Democratic Design, and it is what enables us to offer the best value for money.”
Dave McCabe, CEO of IKEA UK and Ireland (pictured), adds: “Affordability is at the heart of everything we do. We know many people are still feeling the squeeze on household budgets, and we're committed to helping our customers create a home they love without stretching their finances.
“That's why, together with a £54m investment from Ingka Group, we've lowered the prices of 435 of our most popular products by up to 25%. Alongside these lower prices, customers can also benefit from additional in-store-only offers. At a time when every pound matters, we're proud to be making it easier for people to get the products they need for their homes at even better value.”
The initiative concentrates on Europe, where prices will be cut from today. The price reductions follow the investment made in FY24, when prices were lowered across IKEA markets for thousands of products, contributing to increased footfall and order placement.
To support affordability beyond Europe, Ingka Group says it will also invest €70m to help offset inflationary and currency pressures in Asia and North America.
