IKEA to cut prices by 25% on several products in Europe

IKEA Europe has announced it will cut the price of over 1.000 products in September in a bid to entice shoppers amid the cost-of-living crisis.

IKEA cuts prices in Europe this September

IKEA, the popular Swedish budget furniture giant, has confirmed that it will slash the price of over 1.500 products at branches across Europe this September.

The company said it would invest 1,2 billion euros in price cuts to lure in shoppers who have recently become more careful with money due to the cost-of-living crisis. Declining consumer confidence has impacted the budget company, which has now registered two consecutive years of revenue decline.

"The cost of living is increasing, and it's getting tougher and tougher for many people," Juvencio Maeztu said, according to Reuters. Maeztu is the CEO of Ingka, a holding company based in the Netherlands which operates 411 IKEA branches across 32 countries.

Maeztu also acknowledged that Europe’s affordable housing crisis is changing what customers are looking for when they visit IKEA. "For many people, home is a bedroom in a shared house, and it's even more important to offer storage and ​organised solutions”. 

IKEA redesigning products to reduce costs

The CEO of another IKEA holding company based in the Netherlands, Inter IKEA, told Reuters that the brand was redesigning certain products and packaging in order to reduce production costs. 

"We try to constantly optimise the cost picture by redesigning the products from the beginning," Jakub Jankowski told the news outlet. For example, packaging costs for the Pax wardrobe range have recently been cut by 70 percent.

If you want to indulge in some cross-border shopping or import furniture from Europe, some furniture set to drop in price in Germany includes the Poang chair (from 179 euros to 119 euros), the Bestå TV bench and IKEA 365+ kitchen products. In the UK, the Kallax shelf will be reduced from 60 pounds to 49 pounds and Alex drawers from 70 pounds to 55 pounds. 

Don’t forget to declare any purchases that exceed the 300 Swiss franc duty-free allowance per person and also take advantage of VAT refunds at the Swiss border.

While IKEA in Switzerland is also operated by Ingka Group, the product offers available may vary slightly compared to other European countries. Nevertheless, IKEA Switzerland currently states that it has reduced the price of over 500 products in Switzerland.

This article originally appeared on IamExpat Germany.