Ikea Cuts Prices by 28% to Combat Revenue Decline

Ikea is cutting prices on a range of popular products by up to 28% as part of a €1.2bn (£1bn) initiative to attract cash-strapped customers. The company has experienced revenue decline over the past two years, largely due to rising living costs impacting consumer spending on furniture. Juvencio Maeztu, CEO of Ingka, stated that this measure is aimed at making Ikea more affordable even at the cost of lower margins. For investors, this pricing strategy could highlight the pressures facing Ikea’s profitability amid fluctuating consumer demand.