As IKEA will double the price reduction to attract customers who are aware of the costs

IKEA buyers will see a price reduction of up to 50% in many company restaurants around the world, as the Swedish retail giant seeks to attract consumers who are aware of costs.

A company that provides increased economic uncertainty and high pressure on housing pressure will be a temporary measure that will help consumers “stretch their budgets” at that time increased economic uncertainty and high cost of life. The home and furniture retailer said he also offers free nutrition for children.

“Consumer confidence has fallen. People hold on to the money they have in their pockets or in savings,” said Tolga öncü, the IKEA retail trade director, said Emily Tan CNBC on Wednesday.

Seller furniture with a flat bag cut the wholesale prices for An average of 15% last yearallowing retailers to reduce consumer prices.

According to öncü, efforts to increase accessibility cost 2.1 billion euros About 9% and retail sales Reduction of 5.3%.

IKEA also plans to open 58 new stores worldwide during 2025, ending in August, with the first outlet in Seoul – the fifth in South Korea.

Having reduced the prices so deep, IKEA overcomes the tendency, as a number of Western trade brands warns about raising prices by handing over to consumers, part of the higher costs that have been imported into the US

Retail giants such as Walmart, Target, Costco and Nike stated in their latest quarterly income reports that they have already collected prices or plan to do so in the coming weeks.

Despite the fact that the world firms sighed with relief after Trump’s administration stopped sweeping “mutual” tariffs for three months and concluded a preliminary deal with China, Walmart CEO McMilon said “we were unable to absorb all the pressure in the light of the reality.”

IKEA is not “immunity” to higher tariffs that are expected

However, decreased prices in China – the main need – the key market for IKEA – when a local business strongly reduces prices to remain competitive and attract customers against a sluggish consumer demand.

IKEA has 39 stores in China, although its world’s sales in the country slides in recent years and amounted to 3.5% in 2023-24 financial year.

“Demand for big tickets in China will be holding back a decline in consumer confidence,” said John Merser, head of global studies on Coresive Research research. Merser noted that “economic optimism” among the consumers based in China decreased to the lowest level in May.

“There will be limited restrictions on how much retail can stimulate demand in an uncertain context, but an aggressive tsanova position can maintain profit in the market because cautious consumers are trading,” Merrler added.

China’s retailers make great food rates and drinks as one of the few offline segments, where consumers continue to spend, although with less emphasis on value and cost, it said the marketing agency, which will advise European brands working in China.

Outside the IKEA food business, it also seeks to expand its home range to enter the elder population in China.

Öncü emphasized the need to join the “silver economy” in China – A sector that provides goods and services for people over 50.

Economists estimate that by 2040, About 30% of China’s population turns over 60 years oldCompared to approximately 15% in 2024. The elderly population will also present a promising market opportunity as they are usually more financially, accumulating wealth along with China’s economic growth.

“A few generations are increasing. That is why we have presented new bedding and range. Now we are testing to answer the needs that have gone from the silver economy in China,” öncü said.

“If anyone knows how to serve world consumers with a high cost of furniture and furniture, it’s IKEA,” said Mercer Coresive, but “whether the price decrease is sustainable for IKEA.”

The Swedish company said it also planned to submit new items serving Asian cuisine and flavors, which they hoped to bring about 8 million new customers.

“We will soon launch our first Falafel by adding this popular food to our restaurants, and later, in our Swedish food markets,” the Lorena Lourido Gomez, Global Powercode to Ingka Group, said.