Customers at the IKEA store.
Southern China Morning Post | Getti images
IKEA purchases will see a price reduction of up to 50% on many restaurants in global, as a Swedish retail diva aims to attract consumers conscious costs.
The stitched decreased priced will be a temporary measure to “increase budgets” at the time of increased economic uncertainty and high pressure on high costs, without guidance, if reduced when reducing. The seller of the house and furniture said it would also offer free meals for children.
“Consumer confidence has decreased. People are held for money they have in pockets or savings,” Tolga Once, COO in retail Ikea, said Wednesday Emily Tan CNBC.
The seller of furniture with a flat package has taken off wholesale prices Average 15% last yearallowing sellers to reduce consumer prices.
Efforts to improve accessibility cost 2.1 billion euros to the company last year, as per once, even as lower prices of droplets of income about 9% and retail Reject 5.3%.
IKEA also plans to open 58 new stores around the world during fiscal year 2025. It was completed in August, with its first exit in Seoul – Fifth in South Korea and works since April.
Mid prices so deeply, IKEA abolished the trend as well as a set of west retail brands warned the concepts of prices, transferred part of a higher effort to import into the US
Retail giants such as Walmart, goal, Costco and Nike, already set prices in their last weeks or plan to do so in the coming weeks.
Although global firms have shifted the “reciprocal” tariffs three months and hit the preliminary agreement with China, said CEO, “We are not able to absorb all the pressure” We cannot absorb all the pressure. “
IKEA is not an “immune” to greater tariffs, which is expected to inflate and thwart consumer confidence, even though it has managed to “a little absorb the impact and does not exceed the total influence on customers’
The price reduction, however, is an urgent need in China – key market for IKEA – where local companies aggressively cut prices to remain competitive and attract customers due to dispute consumer demand.
IKEA has 39 stores in China, although the share of its global sales in the country has set out in recent years and amounted to 3.5% in 2023-24 financial years.
“The demand for a large card in China will retain with reduced consumer confidence,” said John Mercer, head of global research for research Koreniori. Mercer pointed out that “economic optimism” among Chinese-based birthdays fell to the lowest level in May for more than two years.
“There will be limits of how little the seller of the ticket can encourage the uncertain context, but the aggressive price prices will probably support market-sharing as cautioner consumers who relate back,” Mercer added.
Sellers in China are large on food and drinks as one of the few segments of offline, and still spend, although with a less emphasis on value and costs, said the marketing agency that advises European brands operating in China.
Out of food in food, IKEA also asks to expand the range of products for home for delivery in Chinese growing older stalls.
He emphasized the need to touch in Chinese “Silver Economy” The sector that provides goods and services For people over 50 years.
Economists estimate that until 2040. years, About 30% of the Chinese population will be more than 60 years oldCompared to about 15% in 2024. years. The elderly will also present a promising market opportunity because they tend to be financially financially, accumulated wealth together with Chinese economic growth.
“More generational homes increase. So we introduced new bedding and range. We now test to respond to those needs that came from the silver economy in China,” he said ince.
“If anyone knows how to meet global consumers with a highly competitive offer in furniture and furniture, IKEA,” Koresight’s Mercer said, but “whether the planned price reduction is sustainable for IKEA to determine.”
The Swedish company said she also planned to introduce new items hosted in Asian cuisine and aroma, which hoped to lead to about 8 million new customers.
“We will run our first Falafel soon, adding this popular food to our restaurants, and later to our Swedish food market” Lorena Lourido Gomez, Global France Manager at Ingka Group, in a statement around the world, said in the statement.
