\n<\/p>\n
Swedish furniture giant Ikea is cutting prices across hundreds of products in Europe to woo customers struggling with deepening cost-of-living pressures.<\/b><\/p>\n
Ikea has seen revenue decline over the past two years as the rising cost of living reduces people’s ability to invest in new furniture and home renovations.<\/p>\n
The company is spending \u20ac1.2bn (\u00a31bn) on the price cuts to items including the Billy bookcase and Kallax storage units, with reductions of up to 28% on certain products.<\/p>\n
Ikea said it could make the cuts by making savings throughout the supply chain, such as packaging costs, but acknowledged profits may take a hit. <\/p>\n
Ingka, the franchisee which operates most of Ikea’s European stores, said the cuts were “not an activity or short-term campaign”.<\/p>\n
“It’s about making IKEA more affordable when people need it most, even if it means accepting a lower margin,” said Juvencio Maeztu, chief executive of Ingka. “The cost of living is increasing and it’s getting tougher and tougher for many people.”<\/p>\n
He added: “For many people, home is a bedroom in a shared house, and it’s even more important to offer storage and organised solutions.”<\/p>\n
Ikea has reduced its prices several times in recent years, even as it caused a hit to the company’s revenue and profit in its most recent earnings report.<\/p>\n<\/div>\n