Here’s Why IKEA’s Affordable Furniture Just Got Even Cheaper
Written by
Gina Hagler
Edited by
Travis Woods
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IKEA recently cut prices on its products, which is great news for new customers and those already accustomed to shopping at the popular furniture store alike.
These price cuts come as part of its “New Lower Price,” allowing you to access “hundreds” of items for less — but don’t worry, the quality hasn’t taken a cut. If you’re concerned about the longevity of what might seem like a glorified sale, you can rest easy knowing that IKEA’s intent is to have its affordable furniture remain that way, as that is part of IKEA’s business philosophy.
In fact, the unfortunate economic effect of the pandemic has given greater incentive to IKEA and Ingka Group, their largest retailer, to make positive changes to their business model.
Ingka Group has been focused on restoring the prices to their “inflation-adjusted pre-pandemic levels by the end of the year,” as stated by Tolga Öncu, the retail manager. It isn’t just on the sales side of things, as this restorative process also comes along with their efforts to reduce operational costs and strengthen their overall efficiency as a company. He also added that the goal is to “offer the lowest possible price[s]” and support customers through sustainability, rather than optimize the company’s profits. The return to more comfortable prices has been enabled by the cost of raw materials decreasing, but it all aligns with the vision of IKEA’s founder, Ingvar Kamprad, who wanted great furnishings to go to as many people as possible, regardless of their wealth.
The impact of this price trend affects a wide range of their products. Each category has many options that are labeled under the new lower price: storage & organization, beds, furniture, kitchenware and tableware, home textiles, bathroom, kitchen and appliances, home decor, outdoor and baby and kids. For example, their BILLY bookcase available in the United States, which had increased during the pandemic from $59 to $89 by 2022, has returned to $69 — its price all the way back in 2016.
Additionally, Canada alone saw an investment of $59.5 million, resulting in more than 1,500 products dropping in price. Other countries seeing the effects of this approach are Canada, Belgium, Germany, Sweden and the United Kingdom. All in all, the quality you’re used to is here to stay with lower prices that make IKEA products affordable.
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