We all love IKEA.
Some of us for the cheap DIY furniture, others for the food and Swedish meatballs.
For those who love IKEA for the furniture, there is news to rejoice now.
The furniture giant has already slashed prices for over 140 of its products last month and has plans to continue reducing prices for additional products.
Here’s more about what IKEA Is doing and why it is doing so.
IKEA Singapore Has Reduced Prices for 144 Products and Plans to Continue Reducing Prices
In a time of inflation and rising costs everywhere, it seems like all numbers except our bank account balances are going up.
Food is more expensive, and rent rates have been going through the roof.
But not all is lost.
IKEA Singapore is doing the exact opposite of raising prices. It has slashed the prices for 144 products in September this year (2023) and has plans to continue lowering prices for more products.
More than 60 products may see lower prices come 1 April 2024.
Yay, we are totally here for this.
The price cuts in IKEA Singapore come as part of IKEA’s global efforts to lower the prices of its products.
The Motivation Behind the Price Slashing Is Better Cost Management
At this point, we are sure you’re wondering what the motivation behind cutting prices is.
After all, businesses seem to be raising costs left and right.
The chief executive of Inter-IKEA Group, Mr Jon Abrahamsson Ring, has the answers for us.
Speaking to Bloomberg, the chief executive revealed that 2023 was a year where IKEA managed to “turn the corner on prices” and could start “lowering them again”.
For those who are unaware, Inter-IKEA Group is responsible for franchising the IKEA brand worldwide for 12 franchisees.
The price slashes also reverse the price hikes that IKEA took at the beginning of the year.
Now that the “raw material prices, transportation costs are going in the right direction” (aka, going down instead of up), the chief executive revealed that IKEA is in a good position to adjust prices downwards.
What a good move to pass on these cost savings to consumers. We would not have been any wiser if IKEA decided to keep the additional profits for themselves.
According to Channel News Asia, who spoke to Mr Gerad Jansen, the retail director of IKEA Singapore, there were price cuts of up to 20% for some items.
For example, the MALM chest of drawers in white used to cost $249 but now only cost $199. The Kallax shelving unit used to be $109 but can now be yours for just $89.
Overall, it seems that IKEA Singapore is still standing firmly on its promise to “be the most affordable, accessible and sustainable home furnishing retailer in the country”.