IKEA Singapore has revealed that they have cut the prices for around 144 products.
They also plan to do the same for over 60 more by April 2024.
This comes after news of IKEA outlets globally reducing the prices of some of its products emerged.
Speaking to The Straits Times (ST), the furniture brand shared that they have cut prices to help Singaporeans with their household finances.
According to Bloomberg, IKEA has begun to reduce prices for some of its products internationally.
Rising inflation for the past year and weak consumer sentiment in a majority of markets was cited as a reason for the move.
Addressing the reduction, Chief Executive Officer Jon Abrahamsson Ring of Inter IKEA Group said in an interview:
I think 2023 was the year where we turned the corner on prices and started lowering them again.
The reduction in prices will take place across a variety of goods, including a 20% cut on the bookshelf “Billy”, a popular pick among buyers.
Source: IKEA
Competition over customers is on the rise, Mr Ring said. In addition, “wallets were also getting thinner” due to the ongoing cost-of-living crisis.
For the 2023 fiscal year, IKEA’s retail sales garnered €47.6 billion (S$68.7 billion), translating to an increase of 7.3% when adjusted for currency impact.
The increase was a result of price hikes from the year before and the first half of 2023, which allowed the company to tackle the “continued challenge of lower sales quantities”.
At the beginning of the year, IKEA increased prices due to spiking costs in its supply chain.
Starting in May, the pressure eased with “raw material prices, transportation costs… going in the right direction”, according to Mr Ring.
After global shortages in previous years, more products are now readily available at IKEA’s outlets as well.
Responding to queries by ST, a spokesman for IKEA said Inter IKEA Group oversees the range and supply for 12 IKEA franchisees across the world.
Mr Ring had been referring to a projection of wholesale prices, not retail ones, that will be charged to retailers like IKEA Singapore.
Source: Google Maps
The final in-store prices, though, will vary between countries.
In Singapore, this has translated to a reduction of up to 20% in the prices of items.
For instance, the Kallax shelving unit now costs S$89, down from its previous price of S$109.
Source: IKEA
The Malm drawers are now priced at S$159, lower than its earlier price of S$189.
The official website for the furniture giant shows the affected items are under a category labelled “We lower prices where we can”.
Speaking about the reduction, IKEA Singapore retail director Gerard Jansen said that the company’s 2022 Life At Home report showed that 74% of 1,000 Singaporeans surveyed expressed concerns about their household finances.
“That’s why we work hard to keep prices as low as possible on essential and best-selling items,” he said. “These savings count for the many Singaporeans looking to get the most for their home.”
YouGov carried out the survey, surveying 37,405 respondents in 37 countries.
“The IKEA vision is to create a better everyday life for many people by offering a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them,” Mr Jansen added.
We stand by our promise to be the most affordable, accessible and sustainable home furnishing retailer in the country.
However, the reduction in prices does not apply to food products and menu items at IKEA’s restaurants.
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Featured image adapted from IKEA.
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