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Ikea cuts prices as customers struggle with rising cost of living
Developing
Despite a recent uptick, consumer confidence in Europe is at its lowest level for almost three years due to concerns about inflation and the cost of living, according to EU figures. , external British consumers, meanwhile, are becoming more optimistic about the economy and their own finances, following a truce in the Middle East, but analysts have warned that inflation and the rising cost of living could dent consumer confidence in the coming months.
Ikea said it could make the cuts by making savings throughout the supply chain, such as packaging costs, but acknowledged profits may take a hit. "It's about making IKEA more affordable when people need it most, even if it means accepting a lower margin," said Juvencio Maeztu, chief executive of Ingka.
Ingka, the franchisee which operates most of Ikea's European stores, said the cuts were "not an activity or short-term campaign".
What's confirmed
What's still developing
- Ikea said it could make the cuts by making savings throughout the supply chain, such as packaging costs, but acknowledged profits may take a hit.
- Ingka, the franchisee which operates most of Ikea's European stores, said the cuts were "not an activity or short-term campaign".
- "It's about making IKEA more affordable when people need it most, even if it means accepting a lower margin," said Juvencio Maeztu, chief executive of Ingka.
- Despite a recent uptick, consumer confidence in Europe is at its lowest level for almost three years due to concerns about inflation and the cost of living, according to EU figures. , external British consumers,…
Sources
- BBClink