IKEA takes a big step to make home furnishing more affordable as many people continue to feel pressure from higher living costs. Ingka Group, the largest IKEA retailer, other IKEA franchisees, and Inter IKEA Group are investing EUR 1.2 billion to lower prices across markets in Europe.
These investments reinforce the company’s long-term commitment to affordable home furnishing while securing value for money through good design, quality, and sustainable choices. Rooted in the IKEA vision of creating a better everyday life, the company is lowering prices on hundreds of products to make everyday essentials and customer favourites more accessible.
“Keeping prices low is our long-term commitment and part of our promise to side with the many people,” says Juvencio Maeztu, CEO of Ingka Group | IKEA. “The investment is not an activity or short- term campaign – it’s about making IKEA more affordable when people need it most, even if it means accepting a lower margin. At the same time, we are investing to make IKEA more accessible by opening many smaller stores as part of our omnichannel experience.”
“What is unique about IKEA,” he says, “is that even while we reduce prices, quality, design, functionality, and sustainability keep increasing. This is what we call Democratic Design, and it is what enables us to offer the best value for money.”
The initiative concentrates on Europe, where prices will be cut starting from September 1. This includes popular and iconic products such as the KALLAX storage solutions, HEMNES daybed and the POÄNG armchair, with average price reductions ranging from 15% to 25%. The selection of products and price decrease will differ from market to market.
- In Germany, more than 1,500 products will have their prices lowered by an average of 20%. These include the BESTÅ TV bench, which is reduced by 27%, and IKEA 365+ kitchen products by up to 24%.
- In the UK, prices will be reduced on hundreds of home furnishing products and accessories, including the iconic BILLY bookcase by 28% and the TROFAST storage combination by 24%.
In Italy, prices on hundreds of products have been reduced by an average of 22%, including the KIVIK sofa and the POÄNG armchair.
The price reductions follow the investment made in FY24, when prices were lowered across IKEA markets for thousands of products. That investment helped more people access IKEA items and contributed to increased visitation as well as a higher number of orders.
To support affordability beyond Europe, Ingka Group will also invest EUR 70 million to help offset inflationary and currency pressures in Asia and North America, helping keep prices as low as possible for customers.
