Ikea’s operators are betting more than a billion dollars on lowering prices on some of its most popular products.
Ikea’s largest franchise owner, Ingka Group, said Tuesday it would invest 1.2 billion euros, or about $1.39 billion, in other Ikea franchises and the Inter Ikea Group to lower prices for consumers across Europe.
In Germany, the prices of more than 1,500 Ikea products will be reduced by 20%, the group’s press release said. Customers in Britain will see prices on Ikea’s iconic Billy bookcase fall by 28%, and Italian customers will get a 29% price cut on Ikea’s modular Kallax storage units.
“The investment is not an activity or a short-term campaign; it is about making Ikea more affordable when people need it most, even if it means accepting a lower margin,” Juvencio Maeztu, CEO of Ingka Group, said in the press release.
In an emailed statement to Business Insider, an Ikea spokesperson said the price cuts are not temporary: the chain wants the new prices to be maintained in the long term.
The group also said in the press release that it is investing 70 million euros to “also offset inflation and currency pressures in Asia and North America,” but did not provide details on whether this would entail price cuts.
Ikea, based in Swedenhas long been known for its affordably priced, DIY furniturewith more than 500 stores in 63 markets as of November. Ingka Group is Ikea’s largest retailer and operates Ikea stores in 32 markets.
The group’s net turnover fell from 4.8 billion euros in 2024 to 4.5 billion euros in 2025, while annual profit increased from 0.8 billion euros to 1.4 billion euros.
Ikea is the latest retailer to cut prices amid a global affordability crisis.
Walmart executives said during an August earnings call that the company had received approx $2.9 billion in fare refunds from the US government and could channel it towards price reductions for its customers.
Home Depot follows a similar route, using fare refunds to keep prices stable. Executives at the home improvement chain said during an earnings call in August that it used $685 million of its $730 million in rate refunds to offset higher costs and preserve market value for its customers.
