IKEA owner ‘optimistic’ about future price cuts as input costs ease
The owner of most IKEA stores is eyeing additional price cuts as its cost headwinds have started to let up.
While the flat-pack furniture specialist hiked prices earlier this year, Ingka group’s retail manager Tolga Oncu told Reuters that he was “optimistic” the firm would be able to reduce prices even further.
The furniture giant has been able to lower some prices in recent months after its supply chains recovered from earlier disruptions.
“We are optimistic to continue focusing on lowering prices where we can,” Oncu said, adding that he was “quite optimistic going forward.”
He pointed to a moderation of input costs, including metal and sea transport, making it possible for the retailer to continue slashing prices.
It comes as brand owner Inter IKEA said earlier this month that input costs had started to stabilise.
IKEA stands to do well from the cost of living crunch as budget-conscious shoppers turn to the retailer’s more affordable prices.
“I think our business model really focusing on lowering the prices and making sure we are even more affordable is paying off in times like this,” Oncu said.
Homeware is one of the sectors to be hit hardest by a consumer spending slowdown in recent months, as shoppers hold back on forking out for big-ticket items.
Online sofa seller Made.com recently fell victim to the difficult trading environment, calling in administrators earlier this autumn.