IKEA is investing €1.2 billion to cut prices on more than 1,500 products across Europe, as household budgets remain under pressure.

The company announced the move on Tuesday, saying prices on these products will fall by 15% to 25%, depending on the country and the item.

Everyday items like the Billy bookcase, Hemnes furniture range, and Poang chair are among those getting cheaper.

Exactly how much each product drops, and when, will vary from country to country, with some cuts taking effect immediately and others rolling out over the coming months.

Behind this decision is a simple idea the company’s leadership has been repeating for a while now.

Ingka Group’s CEO Juvencio Maeztu said the company likes to lower prices when people are struggling the most, comparing it to reducing the cost of an umbrella when it’s raining.

He pointed out that in many countries, close to 40 to 50% of a household’s income now goes toward housing alone, leaving people with less room to spend elsewhere. This isn’t IKEA’s first attempt at easing the pressure on shoppers either.

The company has been cutting prices gradually since 2024, after raw material and shipping costs had forced it to raise prices sharply back in 2021 and 2022.

Alongside the European price cuts, the company is also putting €70 million toward softening the impact of inflation and currency swings in Asia and North America.

According to the company, this strategy has worked in bringing more customers into stores and boosting how much they buy, even though it has weighed on the company’s overall revenue and profit margins.

Looking ahead, both Ingka Group and Inter IKEA Group say there’s room for more price cuts next year if they can keep finding ways to cut costs elsewhere in the business.

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