Ikea Reports Sales Decline Amid Price Cuts

IKEA's sales fell by 5% to €45.1 billion for the fiscal year ending August 31, driven by price cuts aimed at attracting customers in a challenging economic climate. The Ingka Group, which operates most IKEA stores, reported that the decline was influenced by a slowdown in the home furnishing market and a decrease in store visits, though foot traffic increased by 3.3% due to pricing strategies. To address the cost-of-living crisis, IKEA reduced prices on over 3,000 products, enhancing its market share to 5.7%. Online sales also rose, comprising 28% of total sales, reflecting a shift in consumer shopping habits. Looking ahead, IKEA anticipates a recovery in 2025 as lower interest rates are expected to stimulate the housing market. The company plans to open 58 new locations worldwide by 2025, continuing its investment in renewable energy and sustainability initiatives.