How Ikea is doubling down on price cuts to attract cost-conscious customers
Czech officials, in the meatballs of the company, only pork and beef meat should be compensated for the horse meat after detecting meat meat in the Gulf of Causeway, the Swedish meatballs in an IKEA are not in stock.
South China Morning Post | Getty Images
Since IKEA customers aim to attract consumers with a Swedish retail giant cost awareness, most of the company’s restaurants will see price cuts up to 50%.
The company said it would be a temporary measure to help consumers during the pressure of increased economic uncertainty and high life costs without specifying when the outages will enter into force. Home and furniture retailer, said it will offer free meals for children.
“Consumer confidence has decreased. People are clinging to the money they have in their pockets or savings,” IKEA Retail Coo Tolga Öncü said on Wednesday, “Consumer confidence has decreased.”
Flat Package Furniture Dealer Reduced Who Wholesale Prices Average 15% last yearTo allow retailers to reduce prices for consumers.
According to Öncü, efforts to increase the cost of 2.1 billion euros to the company last year, even if lower prices see income decrease about 9% and retail sales 5.3 % decrease.
IKEA also plans to open 58 new stores globally in the 2025 financial year, which ended in August, and its first output has been working in Seoul – South Korea since April.
By cutting the prices very deeply, Western retail brands warn a number of price increases and disrupt the tendency to transfer a portion of higher tax costs imported to the USA
Retail giants such as Walmart, Target, Costco and Nike said in the last three -month earnings reports that they have already increased prices or they plan to do it in the coming weeks.
Although global firms take a sigh of relief after the Trump management suspends “mutual” tariffs for three months and made a preliminary agreement with China, we cannot suck all pressure in May, Walmart CEO Doug McMillon, in May, “Considering the reality of narrow retail margins.”
IKEA, inflation supply and consumer trust is expected to focus on high tariffs “immunity” is not “immunity”, but “the effect was able to absorb the effect a little and could not transfer the total effect on customers in the US,” he said.
However, price reductions are an urgent need for IKEA in China, where local businesses aggressively reduces prices in order to remain competitive and attract customers between consumer demand.
IKEA has 39 stores in China, but the share of global sales in the country has shifted in recent years and has been 3.5% in 2023-24 financially.
“The demand for great tickets in China will be withdrawn with a decrease in consumer confidence,” Coresight Research said. He said. Mercer pointed out that “economic optimism” among Chinese -based consumers fell to the lowest level for two years in May.
“There will be limits to how much a large ticket retailer can encourage demand in an indefinite context, but a cautious consumers of an aggressive price stance will support market sharing gains as they trade.”
As one of the few offline segments in China, consumers, consumers continue to spend, said that they have made great bets on food and beverage, but less emphasis on value and cost, and a marketing agency that consults the European brands operating in China.
Apart from the food business, IKEA wants to expand home furniture product range to touch China’s growing elderly population.
The pioneer emphasized the need to benefit from the “silver economy” of China, a sector that provides goods and services for people over the age of 50.
Economists estimate that approximately 30% of the Chinese population will be over 60 years of age by 2040, compared to about 15% in 2024. The elderly population will offer a promising market opportunity, as they tend to be more firmly more robust, which accumulates with the economic increase of China.
“Multi -beloved houses are increasing. So we introduced new bedding and range. Now we’re testing to answer the needs from the silver economy in China.” He said.
“If everyone knows how to address global consumers with a highly price competitive offer to global consumers in furniture and furniture, Coresight’s Mercer,” Coreresight’s Mercer, “said IKEA.”
Sweden company, about 8 million new customers hoped to bring Asian cuisine and tastes that appeal to new items, he said.
“Soon we will add our first falafel to our restaurants and then to our Swedish food markets, and then we will add it to our Swedish food markets.” He said.
