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Price alert in Ikea! While many everyday items are getting more expensive right now, prices are surprisingly falling at Ikea. The first price drop took place last week, Ikea Switzerland confirmed to Blick. “As of January 10, we have reduced prices on over 300 products,” a spokesperson said.
Furniture, cushions, dishes and lamps became cheaper. For example, lower prices apply for the four-section Kallax shelf. The new price was 29.90 francs, down from the previous 39.90 francs. The price of the set consisting of a table and four chairs, called Jokkmokk, is now 169 francs instead of the previous 199 francs. Price savings: 30 francs.
However, more expensive items such as sofas are also in the price reduction round. The price of a five-seater Sörvallen sofa is 3,178 francs. This is 100 francs less than before. With a price of 1,712 francs, Method cuisine is approximately 75 francs cheaper. Ikea indicates the price reduction for individual products on its website with the label “Discounted price for you”.
Despite inflation
The huge price reductions at Swedish furniture stores in times of inflation are surprising. In addition to inflation, the VAT that will increase in 2024 also pushes prices up. Added to this are the Houthi rebels’ attacks in the Red Sea. These have a huge impact on commercial shipping; because that’s why ships bypass the Suez Canal. Therefore, sending cargo by sea becomes more expensive.
It looks like Ikea can absorb these additional costs: The furniture store wants to cut prices on the other 1,000 items in its Swiss range by the end of August. As a result, purchase prices fell slightly again. “But these are still significantly above the levels of about three years ago, that is, before the epidemic, the war and the inflation,” the spokesman emphasizes.
However, by lowering prices, Ikea is trying to get closer to its main goal of keeping products affordable for as many people as possible. But economic challenges remain great.
This is how Ikea gains market share
At the WEF in Davos, Jesper Brodin (55) also talked about planned price reductions in many Ikea countries. He is the CEO of the Ingka Group, which owns most of the Ikea stores worldwide. The group invested €1 billion in price cuts between September and November last year. At Ikea, price cuts will not affect profits. On the contrary: the furniture store will thus gain more market share.
“This is not a year for us to optimize profits,” Brodin said, adding: “This is a year where we’re trying to deal with lower profits to make sure we’re supporting people.”
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
