IKEA Canada to Cut Prices on More Than 1,500 Products Citing Cost of Living

File photo dated 12/01/20 of signage for Ikea outside their store in Southampton. Ikea has said it is struggling to meet high demand for some of its products, especially mattresses, as Britons buy new furniture for the homes they spent much more time in during lockdown. Issue date: Monday September 6, 2021.

IKEA is promising price reductions on more than 1,500 products as part of an $80-million investment in its Canadian stores, citing cost of living concerns for customers.

The Swedish furniture giant made the announcement this week, citing a recent company report that said household finances and disposable income are a concern for 45 percent of Canadians.

“We know that in Canada, the cost of living and affordability is more important than ever as many Canadians face rising living costs and increased inflation,” IKEA Canada CEO Selwyn Crittendon said in a Jan. 24 press release. “Many are facing an affordability crisis and are struggling with fundamental costs such as housing, fuel, health, and food.”

Although prices won’t drop on all products due to the increased cost of doing business, Mr. Crittendon said the company is “committed” to reducing prices on products when possible to increase affordability for its customers.

Jesper Brodin, CEO of Ingka Group—which owns most IKEA stores worldwide—told Reuters this week that price pressures created by the pandemic have eased, making its planned price cuts possible this year.

Mr. Broden said the company has realized “quite significant deflation” upstream in its supply chain, despite Houthi militants disrupting global commerce on the Red Sea.

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With deflation—the expenses incurred in producing a product— dropping for IKEA, the retailer can afford to pass on some of that savings to consumers, Mr. Broden said.

“This is not a year for us to optimize profits,” he said. “This is a year to try to navigate on a thinner profit, but to make sure that we support people.”

Like most retail companies, IKEA hiked prices in 2022, citing supply chain hold-ups and elevated costs for raw materials. The company first started cutting prices in late 2023, although prices have yet to return to pre-pandemic levels.

Planned Price Cuts

Products on the price chopping block run the gamut from smaller items like food storage containers and throw pillows to large pieces of furniture such as chairs and bookcases. Lighting, cookware, and bed textiles will also see prices chopped.

Online shoppers can find deals in a ‘Lower Prices’ section earmarked on the site.

Some notable deals include the $100 price drop on the Morabo Sofa, going from $1,299 to $1,199.00 as well as the $50 price drop on the Billy Bookcase with glass doors down from $249 to $199, and the Strandmon Armchair which was $399 and is now $349.