Swedish furniture giant IKEA plans to continue lowering prices in the United States as inflation pressures ease.
IKEA recently reduced prices on hundreds of items and promised to “continue to reduce prices in the U.S. in the coming months,” the company said in a statement to FOX Business.Product added “New Low Prices” section of the website.
The company has reduced prices in several countries and plans to expand this effort throughout 2024 as transportation and raw material costs ease.
Tolga Oncu, head of retail at Inkga Group, the largest owner of Ikea stores, said in January that the company would increase investment in discounts over the coming months as it aims to return the company’s prices to pre-pandemic levels adjusted for inflation. Announced. Raise the level by the end of 2025.
Onchu said the company “continues to see positive economic developments and lower raw material prices in its supply chain,” which will help reverse price increases that began in 2022.
“At the same time, we are focused on reducing operating costs and improving efficiency, including investing in technology, training colleagues, repurposing stores and introducing more affordable services,” he said.
Ontsch said the prices of 2,000 products in Germany were reduced by an average of 20% in January.
In Sweden, 2,500 products were reduced in price, and in Canada, more than 1,500 products were reduced in price.
In an interview with CNBC on Tuesday, Ontu said the number of customers and items sold had increased as a result of price cuts already implemented in Europe in September.
