Ikea has reduced prices on almost 1,000 items, citing a surge in sales

Swedish furniture retailer Ikea has reduced prices on nearly 1,000 products in the United States, including its popular Billy bookcase, and intends to continue doing so.

“We are lowering prices on our most important products,” said Jon Abrahamsson Ring, CEO of Inter Ikea Group, the global franchiser for the brand. “There are more to come.”

The company initiated the price reductions in the US in January and is extending them to the over 60 other markets where it operates. Consumers have responded by purchasing more of these lower-priced items at Ikea stores.

“If we hit the right product with the right price point, it really takes off,” Ring noted, highlighting that consumers are increasingly price-conscious.

During the COVID-19 pandemic, the furniture maker, which offers 9,500 products, raised prices across its range for the first time in decades due to disruptions in the supply chain. Now, declines in raw material costs and reduced transportation expenses have enabled the price cuts, along with productivity improvements in the company’s supply chain.

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