Ikea Banks on Price Cuts, More City Centre Stores After Lacklustre Year: CEO to AFP
The retailer cut prices and added 30 stores as weak demand and higher costs from the Iran war weighed on profits, CEO Jakub Jankowski said.
- On Friday, Nov 6, Swedish furniture retailer IKEA reported a third straight year of declining sales, with revenue falling 2% to €43.8 billion for the financial year ending Aug 31.
- Rising energy and freight costs from the war in the Gulf combined with weaker consumer demand to drive smaller purchasing volumes and less efficient production capacity, the company said.
- Net profit dropped to €1.4 billion from €1.5 billion in 2025, while Inter IKEA cut 850 jobs in May to reduce operational costs amid the stagnation.
- The BILLY bookcase maker shifted focus toward smaller city-center locations, opening 15 stores in Europe while closing 7 locations in China as weak demand persists.
- Inter IKEA CEO Jakub Jankowski said the company must "return back to growth" by becoming more affordable for families, as fewer consumers rely on cars for suburban shopping trips.
21 Articles
21 Articles
Radio France Internationale
rtl.luIkea banks on price cuts, more city centre stores after lacklustre year: CEO to AFP
"I think we are finding the formula, that Ikea is back to our vision about being affordable for the many people who don't have money," Jakub Jankowski, chief executive of the Inter Ikea holding company, said in an interview. "I think it will work... There are more and more people in the world who do not have money," he said. In September, the group announced price cuts of up to 28 percent on around 1,500 products in Europe, lowering its prices f…
Swedish furniture dealer Ikea wants to respond to the decline in profits in its past fiscal year with lower prices and more shops in inner cities. "I think we're starting to find the right formula for Ikea to return to our vision of being affordable for the many people who don't have much money," Group CEO Jakub Jankowski said on Friday of the news agency AFP. In September, the Group announced price reductions of up to 28 percent for around 1500…
IKEA CEO vows to bring growth back after sales fall for third year
Swedish furniture retailer IKEA reported a third straight year of declining sales on Friday as it grapples with Iran war-driven cost increases and weak demand from budget-conscious consumers despite a move to slash prices.
Coverage Details
Bias Distribution
- 88% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
