Ikea shoppers will see price cuts of up to 50% at many of the company’s restaurants globally, as the Swedish retail giant aims to attract cost-conscious consumers.
The steep price cuts will be a temporary measure to help consumers “stretch their budgets” at a time of heightened economic uncertainty and high cost-of-living pressure, the company said, without specifying when the cuts will come into effect. The home and furniture retailer said it would also offer free meals for children.
“Consumer confidence has decreased. People are holding on to the money that they have in their pockets or in savings,” Tolga Öncü, COO at Ikea Retail, told CNBC’s Emily Tan Wednesday.
The flat-pack furniture seller slashed wholesale prices by an average of 15% last year, allowing retailers to cut prices for consumers.
Efforts to enhance affordability cost 2.1 billion euros to the company last year, according to Öncü, even as lower prices saw revenue drop about 9% and retail sales decline 5.3%.
