IKEA's largest franchisee, Ingka Group, emphasises that maintaining price consistency is key as customers increasingly seek stability. Speaking at the World Economic Forum in Davos, CEO Juvencio Maeztu noted that both companies and consumers value predictability.
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Following price hikes during the COVID-19 pandemic due to supply chain disruptions, IKEA has reduced prices over the past two years to counter weak demand amid high inflation and a sluggish housing market. However, some US products have recently seen price increases to offset tariffs. Maeztu stressed that the company must "take things as they come, one by one" and avoid over-reacting, particularly on pricing, to preserve long-term stability.
Ingka Group, which operates in 32 markets and accounts for 87% of IKEA sales, reported its lowest annual sales since 2021 after implementing price cuts to attract customers. Maeztu described consumer sentiment as a "mix of being cautious and optimistic, both at the same time," underlining the importance of measured, consistent responses to short-term disruptions.
This approach reflects IKEA's focus on balancing market pressures with consumer expectations, aiming to maintain trust and stability across global markets.
Source: www.reuters.com
