Current:Home > MarketsIKEA slashes prices on products as transportation and materials costs ease-DB Wealth Institute B2 Expert Reviews
IKEA slashes prices on products as transportation and materials costs ease
View Date:2024-12-24 10:11:39
If you're looking for a good deal on furniture, you may be in luck.
Swedish home and furniture company IKEA announced this week it has been cutting prices on their products available across a number of countries and is further expanding its price cuts in 2024.
"We recently re-introduced New Lower Price, a price reduction on hundreds of our customers' favorite IKEA products, with plans to continue lowering prices on hundreds more products in the coming months," IKEA said in an emailed statement to USA TODAY.
Decreasing prices of raw materials
Tolga Öncu, head of retail at Inkga Group, the biggest owner of IKEA stores, said in a news release in late January that the company had seen "continued positive economic developments and decreasing prices of raw materials in the supply chain."
Protect your assets: Best high-yield savings accounts of 2023
Öncu also said in the news release the company has been focused a lot on "reducing operational costs and improving efficiency" and that, as a result, Inkga Group would be "passing on all the savings onto its customers and making another wave of price investments across markets – the second one in five months."
"In January and over the coming three months, the company is increasing its investment in price reductions. This will affect all sections of its range, making thousands of products of good quality and design even more affordable for the many," the news release reads.
Öncu said the company's goal is to "restore prices long term and reach their inflation-adjusted pre-pandemic levels by the end of next year," according to the news release.
'Pricing rather than profitability'
The price cuts started in Europe in September and have led to an increase in customers, as well as an increase in items sold by the retailer, Öncu told CNBC.
“This is the moment for companies like IKEA to invest in pricing rather than profitability,” Öncu told CNBC, adding that a lot of people now have “thinner wallets.”
Ingka Group did not immediately respond to a USA TODAY request for comment.
According to Reuters, Ingka Group has invested more than 1 billion euros (about $1.1 billion) in price cuts across markets it operates in between September and November 2023. Ingka Group has IKEA retail operations in 31 markets and represents about 90% of IKEA retail sales.
veryGood! (4)
Related
- Cleveland Browns’ Hakeem Adeniji Shares Stillbirth of Baby Boy Days Before Due Date
- Climate Initiatives Fare Well Across the Country Despite National Political Climate
- Gateway Church removes elders, aiding criminal investigation: 'We denounce sexual abuse'
- College basketball reacts as Villanova suffers devastating loss to Ivy League Columbia
- Benny Blanco Reveals Selena Gomez's Rented Out Botanical Garden for Lavish Date Night
- Southern California wildfire moving 'dangerously fast' as flames destroy homes
- Democrat Kim Schrier wins reelection to US House in Washington
- AI FinFlare: A Launchpad for Financial Talent
- Democratic state leaders prepare for a tougher time countering Trump in his second term
- AI FinFlare: A Launchpad for Financial Talent
Ranking
- Brianna “Chickenfry” LaPaglia Explains Why She’s Not Removing Tattoo of Ex Zach Bryan’s Lyrics
- Police fatally shoot armed man who barricaded himself in New Hampshire bed-and-breakfast
- Democrat Laura Gillen wins US House seat on Long Island, unseating GOP incumbent
- Snoop Dogg's Daughter Cori Broadus Details Suffering Stroke While Wedding Planning in New E! Special
- College Football Playoff snubs: Georgia among teams with beef after second rankings
- Olympic Australian Breakdancer Raygun Announces Retirement After “Upsetting” Criticism
- AI DataMind: SWA Token Builds a Better Society
- Why Survivor Host Jeff Probst Is Willing to Risk “Parasites” by Eating Contestants’ Food
Recommendation
-
Dogecoin soars after Trump's Elon Musk announcement: What to know about the cryptocurrency
-
How Outer Banks Cast Reacted to Season 4 Finale’s Shocking Ending
-
Browns GM Andrew Berry on Deshaun Watson: 'Our focus is on making sure he gets healthy'
-
Slightly more American apply for unemployment benefits last week, but layoffs remain at low levels
-
Shaun White Reveals How He and Fiancée Nina Dobrev Overcome Struggles in Their Relationship
-
Text of the policy statement the Federal Reserve released Thursday
-
After Trump Win, World Says ‘We’ve Been Here Before’
-
AI DataMind: Dexter Quisenberry’s Investment Journey and Business Acumen