IKEA says falling input and freight costs have allowed it to lower prices across the range as part of a long-term affordability push rather than a time-limited sale. Inter IKEA Group reported that costs began to ease in the second half of FY23 and continued through FY24, enabling reductions that are already lifting visitation and volumes.
Ingka Group, the largest IKEA franchisee, confirmed it invested more than €2.1 billion in price reductions across thousands of products during FY24. This helped maintain global market share at 5.7%, even as Ingka’s retail sales declined 5% year-over-year to €39.6 billion, as it prioritised affordability.
In some markets, the scale of reductions has been made clear. For example, IKEA Canada confirmed that it cut prices on more than 1,500 products in 2024, with further reductions to follow this year, illustrating the breadth of its permanent “new lower price” approach.
The UK’s ‘New lower price’ listings show similar changes, including certain BILLY bookcase combinations moving from £199 to £150, alongside cuts to BRIMNES and MALM bed frames.
Design tweaks are also contributing to cost savings. The much-loved BILLY has had its veneer and edge-banding switched to paper foil, and its back-panel fix simplified – changes IKEA says improve sustainability and efficiency without affecting everyday use.
In the UK, accessibility is part of the strategy. The company opened its Oxford Street city store on May 1, 2025, and launched a new small-format outlet in Harlow in July, with Norwich and Chester to follow.
These curated, compact stores combine planning services with delivery ordering, aimed at shoppers who may not travel to traditional warehouse-sized branches.
IKEA’s pricing changes are structural, funded by reduced costs and significant investment. Permanent “new lower price” tags can appear at different times, depending on the country and product. Checking local listings, especially on high-volume ranges like storage, seating, and bedroom, is the best way to spot savings.
