STOCKS | Ikea Cuts Europe Prices by 1.2 Billion Euros to Ease Cost-of-Living Pressure

Ikea cut prices in Europe this year by a total of 1.2 billion euros, covering some of its best-selling products such as the Billy bookcase and the Kallax storage range. According to Sina Finance, the assembled-furniture retailer said it is lowering prices on about 1,500 products in more than 20 European countries by 15% to 25% as consumer confidence remains weak. Ikea chief executive Jesper Brodin said the company is willing to sacrifice profit to respond to the cost-of-living crisis. He added that the retailer will also spend 70 million euros on price cuts in the Americas and Asia. The company said European consumer confidence remains at a three-year low, despite a slight recent recovery. It said confidence was hit after the outbreak of the Iran war in February, amid concerns over inflation and higher energy prices. Ikea said the impact of the price cuts will appear in next year’s results. The company is due to report full-year revenue data, with its fiscal year ending in late August.