Ikea launches series of price cuts as demand shrivels

Ikea Thailand, the local arm of the Swedish home furnishing giant, is navigating economic challenges by implementing price reductions and introducing its “Ikea for Business” programme to capture growing demand from hotels, offices, property developers, and small and medium-sized enterprises (SMEs).

- BOONSONG LIPIMAS

Leonie Hoskin, retail manager of Ikea Thailand and Vietnam, said fiscal 2025 (September 2024 to August 2025) was a challenging one for Ikea. The main pressures were high household debt and political instability, which made the economic and business environment difficult.

As a result, the company’s total sales rose by only 1%. Ikea set a sales growth target of 6% for fiscal 2026, driven by a significant increase in investment in its price reduction campaign, she said.

The initiative cuts prices by 20-25% on 2,500 products, nearly double the number from last year, and maintains these lower prices for the entire year.