Results: Ikea has suffered a slump in sales after cutting prices to tempt hard-pressed shoppers
Ikea has suffered a slump in sales after cutting prices to tempt hard-pressed shoppers to spend.
Revenue fell 5.3 per cent to £38billion in the 12 months to the end of August – the first decline since 2020 – as the Swedish firm cut prices of more than 3,000 products.
The UK arm’s sales slid 6.8 per cent to £2.3billion. Ikea linked the drop to a ‘strategic decision to prioritise affordability’ as it invested more than £117million in lowering prices.
Peter Jelkeby, chief executive of Ikea UK, said: ‘In a year of economic uncertainty, our priority was clear: stand with our customers. In spite of reduced turnover, continuing to lower prices remains our long-term priority.’
Ikea UK said it was continuing its expansion programme, with stores on Oxford Street in London, and central Brighton, set to open next year.
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