From BigGo Finance · BigGo Finance · · 1m
Ikea Cuts Prices to Boost Sales
Ikea slashes prices on 1,500 products to reverse sales decline.
In brief
Ikea slashes prices on 1,500 products to reverse sales decline. Ikea reduced prices by up to 28% on 1,500 European products to counter a 1.8% drop in annual sales to €43.8 billion. Originally reported by BigGo Finance.
Ikea Sales Decline
Ikea reported a 1.8% drop in system-wide retail sales to €43.8 billion for the fiscal year ended August.
Operating Profit Falls
Operating profit dropped 12% to about €1.5 billion due to cost pressures and inflation.
Price Cuts on 1,500 Products
Ikea cut prices by up to 28% on roughly 1,500 European products in September.
Price Investment
The company committed about €1.2 billion to customer price reductions in the past two years.
Store Network Adjustments
Ikea opened 30 small-format city stores while closing eight large outlets, seven in China.
CEO and CFO Statements
Chief Executive Jakub Jankowski and CFO Henrik Elm expect a return to growth after two years of decline.
In short
Ikea reduced prices by up to 28% on 1,500 European products to counter a 1.8% drop in annual sales to €43.8 billion.
