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IKEA store owner eyes more price cuts as some input costs ease

IKEA has been raising prices to cope with soaring costs in its supply chain. Now it’s hoping to put that process into reverse. The furniture giant says it’s looking at price cuts as some of its input costs start to ease. That’s according to Tolga Oncu, a senior official at Ingka Group, which owns most IKEA stores.

Like other firms, IKEA has faced soaring costs. They were driven up by factors including the conflict in Ukraine, and global supply chain snags. But Oncu says the price of some raw materials, such as metal, is now coming down again.

Shipping costs have also eased. India is one of IKEA’s fastest growing markets. As in some other countries, it’s now opening small city branches there, as well as its famous out-of-town megastores. Last week, Ingka Group reported a 9% jump in annual profits, driven by price increases.

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