Ikea’s parent company Ingka Group expressed is confident that its next round of price cuts will boost sales volumes in the upcoming year.
Despite spending approximately €1bn on price reductions during its first quarter, Ingka noted that sales volumes remained largely unchanged year on year.
Ingka finance boss Juvencio Maeztu said: “We are more or less at similar levels to last year when it comes to the volume.”
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“We are … positive that the more price investment we will do in the next month and the next year will cement the belief that Ikea is the right place,” he added.
No detail was given about the depth of price cuts.
Ingka Group, which accounts for 88% of global the Swedish furniture giant’s sales, reported largely unchanged operating profit for its last financial year to end August, at €2bn versus €2.04bn a year before.
Maeztu told Reuters it could have achieved higher profits but chose not to pass on the bulk of its higher costs to customers to keep prices stable.
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