IKEA is cutting its price lists again. From September 1, hundreds of products across Europe got cheaper, backed by a 1.2 billion euro investment funded by Ingka Group, the company's largest franchisee, together with the other franchisees and Inter IKEA Group. The move covers around 1,500 products, with average reductions between 15% and 25% depending on the market, and it has a stated goal: keeping furniture affordable at a time when inflation is squeezing European household budgets.
What changes, country by country
In Italy, prices on hundreds of products have been cut by an average of 22%. The deepest reduction hits the Kallax shelving unit, down as much as 29%: the 77x147 cm version now costs 55 euros. Bestå TV frames lose 26% on average, the Poäng armchair 12.5% (now 69.95 euros), and the Kivik sofa starts at 299 euros, 25% less for the two-seat version.
In Germany, the group's largest market by revenue, more than 1,500 products are being cut by an average of 20%, with the Bestå TV bench down 27% and the IKEA 365+ kitchen line up to 24% cheaper. In the United Kingdom reductions reach 28% on the Billy bookcase, while the Trofast storage series loses 24%.
These are not peripheral products: Kallax, Poäng and the Hemnes daybed are among the catalogue's most iconic items, in production for decades and among the best sellers of all time.
The backdrop: inflation at 3.3% and falling sales
The move comes as inflation accelerates again. According to Eurostat's flash estimate, euro area consumer prices rose 3.3% year-on-year in August, up from 2.9% in July, driven mainly by energy, which climbed more than 14% in a year. Italy posts the same 3.3% rate according to ISTAT, with energy goods as the main driver.
The timing is no accident: European consumer confidence is at its lowest in three years and households are postponing non-essential purchases such as furniture and renovations. The group is also starting from a weak base: in fiscal year 2024-25 Inter IKEA closed with revenue of 44.6 billion euros, down 1%, and net profit plunged 32% to 1.5 billion. The price reductions introduced to support sales contributed to the drop in profitability.
Trading margin for volume
Spending 1.2 billion euros on price lists is an explicit bet: accepting lower margins to bring customers back. Ingka Group CEO Juvencio Maeztu made clear this is not a timed campaign: "This investment is not a short-term initiative or campaign, but aims to make IKEA more accessible when people need it most, even at the cost of accepting a lower margin". He told the Financial Times: "IKEA likes to reduce the price of the umbrella when it's raining. And it's raining for many customers because the cost of living is increasing".
Inter IKEA Group CEO Jakub Jankowski also framed it as a long-term commitment: "I strongly believe that is not a one-off. We will continue to do it. It's a long-term commitment". Jankowski assured that suppliers will face no pressure on costs and that higher volumes should translate into larger production runs.
The precedent is recent: in 2024 the group lowered prices across all its markets, a first round that already supported sales volumes. This second phase focuses on Europe, where the integrated supply chain makes cuts cheaper to absorb, while an additional 70 million euro program is planned for North America and Asia to cope with inflation and currency swings.
Beyond price cuts: smaller stores and proximity
The strategy goes beyond pricing. In parallel, the group is investing to get closer to customers by opening many smaller stores within its omnichannel approach, which integrates large warehouses, compact outlets, e-commerce and the app.
In Italy, where IKEA has operated for 37 years with about 8,000 employees, more than 50 touchpoints and over 260 million visitors across stores and the website in fiscal 2025, the move is presented as a long-term promise. "Lowering prices on hundreds of our most beloved products is not part of an isolated promotion, but a promise we make to people to stand concretely by their side", said Alpaslan Deliloglu, CEO of IKEA Italia. The Italian market, with revenue of about 2.2 billion euros in 2025, is the group's fifth largest after Germany, the United States, the United Kingdom and France.
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