IKEA will reduce prices on goods amid declining sales volumes – Kommersant

Furniture manufacturer IKEA has decided to cut prices on its products amid soaring inflation and “weak consumer sentiment.” A number of goods will fall in price, some items by 20%, said Jon Abrahamson Ring, chief executive officer of Inter IKEA Group.

The company raised prices for franchisees earlier this year amid soaring supply chain costs. However, since May the situation has improved, as prices for raw materials and transport costs are “moving in the right direction,” explained Mr. Ring, whose words are quoted by Bloomberg.

According to reportingIKEA’s retail sales reached a new record of €47.6 billion ($50.6 billion) in fiscal 2023, an increase of 7.3%. This helped offset the “ongoing problem of declining sales,” Abrahamson Ring said. But, he said, “competition for consumers’ wallets” is increasing, while “wallets are also getting thinner.”

IKEA closed its stores in Russia in March 2022. In June IKEA announced on the sale of four of its factories in Russia, and also announced a reduction in business in the country. Source TASS claimedthat IKEA expects to return to Russia within two years. In February 2023, a government commission approved sale of three of four Russian IKEA factories.

Read more about the deal in the Kommersant FM article. “IKEA has reached the final stage”.

Laura Keffer