IKEA announces a price reduction
2022.11.28 11:08
IKEA announces a price reduction
Budrigannews.com – The retail manager for Ingka Group, which owns the majority of IKEA furniture stores, told Budrigannews on Monday that the company is planning additional price cuts as some input costs decrease. This is a change from the price hikes that were implemented last year to combat rising inflation.
In order to pass on rising costs of raw materials and disruptions in the supply chain, the largest furniture retailer in the world raised prices during its fiscal year that ended in August.However, as inventory began to increase and supply chains began to recover toward the end of the period, it was able to once more reduce prices.
Ingka’s head of retail, Tolga Oncu, stated in an interview on Monday, “We are optimistic to continue focusing on lowering prices where we can.”I have high hopes for the future.”
According to Oncu, the company will be able to continue cutting costs if some input costs, like shipping metal and water, are reduced.
He added that IKEA’s profits will continue to rise as a result of operational efficiencies, and the company’s lower prices should entice new cost-conscious customers.
Inter IKEA, the owner of the brand, is in charge of supply. This month, Inter IKEA said that input prices had started to stabilize. It said that promotional campaigns and lower prices on some popular products would be important for attracting shoppers who were strapped for cash.
Consumers all over the world have been compelled to tighten their belts as a result of high inflation, and aggressive rate hikes by central banks have added to concerns of a global recession and lower demand.
According to Oncu, “I think our business model really focuses on lowering prices and making sure we are even more affordable is paying off in times like this.”
Oncu was speaking during a trip to India, a market that IKEA entered in 2018. There, the company currently operates three conventionally large out-of-town big-box stores in addition to two smaller inner-city ones.India is one of its fastest-growing markets, and the company has stated that it intends to invest in additional shopping malls and stores.
It intends to open additional stores near New Delhi and the cities of Pune in the west and Chennai in the south of India.
