IKEA invests 90 million euros to reduce the prices of 1,300 products – Executive Summary

IKEA has released its results for the 2023 financial year, achieving record profits of €148 million, an increase of 68% compared to the previous year in Spain.

in an agreement For the retailer, this result is partly due to profits received from business in Portugal and the opening of new stores.

Online sales represent 24% of total sales at €465 million, while the food category has doubled in one year to reach €71 million.

Furthermore, the Ingka Group, which is responsible for IKEA's retail management in 31 markets, seeks to make products more accessible, reinvesting 85% of turnover in the business itself and allocating 15% to social projects. Group sales rose by 5.4% to 44.3 billion euros, with investments in digital services, logistics and 60 new IKEA touch points.

The company also announced plans to reduce product prices by 20%, and allocated 90 million euros for this purpose until April, in addition to another seven million for transportation costs.

They explained that this price reduction is possible thanks to the optimization of the supply chain, using part of the profits obtained from this efficiency.

“Our company's philosophy is precisely to be close to customers and respond to their needs. We want to offer low prices and even more so in the current economic situation, where the home is gaining great importance because people stop planning outside and make more plans abroad,” says Noureddine Akar. , General Manager of IKEA in Spain: “Home, which he confirmed.”

IKEA currently has 18 stores, 33 planning studios and 60 delivery points in Spain, and 5 stores – Alfragide, Llores, Loli, Matosinhos and Braga – and 12 planning studios in Portugal.

Executive Digest contacted Ikea Portugal to find out whether the price drop would be reflected in the national market.