IKEA Cyprus is set to join a broader round of price reductions as the Swedish furniture retailer seeks to revive demand amid higher housing costs and tighter household budgets.
IKEA Retailers Invest €1.2 Billion To Lower Prices
According to Reuters, IKEA retailers across Europe are investing €1.2 billion in price reductions as the group seeks to attract cost-conscious consumers after two consecutive years of declining revenue.
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“The cost of living is increasing, and it’s getting tougher and tougher for many people,” said Juvencio Maeztu, chief executive of Ingka, IKEA’s largest retailer. “For many people, home is a bedroom in a shared house, and it’s even more important to offer storage and organised solutions.”
Housemarket Brings Price Cuts To Cyprus
In Cyprus, IKEA franchisee Housemarket is among the operators implementing the reductions. It runs an IKEA store in Nicosia, the island’s capital, and a plan-and-order point in Limassol.
Housemarket also operates IKEA stores in Greece and Bulgaria, giving it a regional footprint across Southeast Europe.
IKEA Cuts Prices On More Than 1,500 Products
The wider price-reduction program includes more than 1,500 products in Germany, IKEA’s largest market by revenue. Selected products in Britain have also been discounted.
IKEA said product redesign, automation and increased use of renewable energy have helped it reduce costs. For example, the company has cut packaging costs for its Pax wardrobe range by 70%.
Smaller Stores Expand IKEA’s Retail Strategy
Alongside the price cuts, IKEA has opened seven smaller European stores since January. The move reflects a gradual shift from its traditional out-of-town retail model as the retailer adapts its store formats to changing consumer behavior and household spending patterns.
