IKEA cuts prices across Europe, with popular products up to 40% cheaper

IKEA has launched a new wave of price cuts across Europe as households come under increasing pressure from the rising cost of living. In Germany, its largest market, prices have already fallen on more than 1,500 products. Reductions have also begun in Croatia.

The average discount is around 20%, but some popular items have become much cheaper. The Poäng armchair, for example, has dropped from €179 to €119. Kallax shelving is now up to 40% cheaper. The cuts also cover many smaller household products, including hangers and storage containers.

IKEA says the lower prices respond to consumers who are managing their money more carefully and postponing purchases of furniture and other household goods. The company says it does not intend to finance the reductions at the expense of its business. Instead, it is redirecting savings made elsewhere.

One example is the Pax wardrobe range. Redesigning the wardrobe and its packaging reduced packaging costs by as much as 70%. IKEA also points to greater automation, more efficient production and logistics, and increased use of renewable energy as sources of additional savings.

“Living costs are rising, and it is becoming increasingly difficult for many people to cover everyday expenses,” said Juvencio Maeztu, chief executive of Ingka, IKEA’s largest retail partner. The company is also expanding smaller stores in city centers while keeping its traditional large outlets on the edges of cities as an important part of its network.

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Living costs are rising, and it is becoming increasingly difficult for many people to cover everyday expenses.