IKEA is cutting prices across Europe as part of a new €1.2 billion investment in affordability, with lower prices being introduced across multiple markets from September. The Swedish furniture group says the initiative is intended to make its products more accessible while supporting long-term growth through higher customer volumes.
The new affordability effort, announced on 1 September, involves both Inter IKEA Group and IKEA retailers across Europe. Inter IKEA Group is reducing the purchasing prices charged to franchisees, while retailers are making additional investments to lower prices for customers.
Together, these measures amount to approximately €1.2 billion. All IKEA franchisees in Europe have committed to lowering prices, although the products involved, the timing and the scale of the reductions are decided separately in each market.
The Nordic countries are part of IKEA’s affordability effort
The new price strategy is already visible across the Nordic region.
In Denmark, IKEA plans to reduce prices on nearly 1,000 products by the end of March 2027. The company is investing DKK 88 million (€11.8 million), with the reductions being introduced in three stages.
According to TV 2 Denmark, many of the Danish reductions will range between 15% and 25%. Products from well-known ranges including KALLAX, HEMNES and IKEA 365+ are among those affected.
In Sweden, IKEA introduced lower prices on selected products from 1 September. Some products are being offered at a lower price in physical stores than online.
In Norway, the retailer has also introduced lower prices on selected products, including items from ranges such as BILLY, TROFAST and MICKE.
In Finland, IKEA says more than 200 products are currently available at a “New Lower Price”.
The measures differ between the Nordic markets, reflecting the structure of IKEA’s European affordability effort, which combines common reductions in purchasing costs with decisions and investments made by individual franchisees.
IKEA is trying to lower costs as well as prices
The affordability strategy is not based only on accepting lower margins.
IKEA says it is also working to reduce costs throughout its value chain, including product development, manufacturing and distribution. According to the company, efficiencies achieved in these areas can then be passed on to customers through lower prices.
In Denmark, for example, IKEA selected products partly according to customer demand and partly by identifying areas where production and distribution could be made less expensive.
This combination of direct price reductions and lower operating costs is at the centre of the wider European initiative.
Lower prices are also a growth strategy
The new investment continues a strategy IKEA has pursued in recent years as households have faced higher living costs.
Ingka Group, IKEA’s largest retailer, says it has already invested more than €2.1 billion in lowering prices in recent years. The company says those reductions helped increase store visits, orders and the number of products sold.
IKEA now says it is prepared to accept lower margins to keep products affordable. The company describes the latest measures not as a short-term campaign, but as part of its broader commitment to affordable home furnishing.
The €1.2 billion European investment extends that approach across the continent, while allowing each market, including the Nordic countries, to decide where and how the new lower prices are applied.
