IKEA Cyprus joins European price-cut initiative
IKEA Cyprus franchisee Housemarket will implement price reductions as IKEA retailers invest €1.2 billion across Europe to support demand.
Nicosia, Cyprus. IKEA Cyprus is joining a new wave of price cuts announced on Tuesday as the Swedish furniture retailer seeks to revive demand amid rising housing costs and pressure on household budgets.
The reductions form part of a €1.2 billion investment by IKEA retailers across Europe, following two consecutive years of falling revenue.
Cyprus operations
Housemarket, IKEA’s franchisee in Cyprus, is among the operators that have agreed to implement the price cuts.
Cyprus has one IKEA store in Nicosia and a plan and order point in Limassol. Housemarket also operates IKEA stores in Greece and Bulgaria.
European measures
According to Reuters, more than 1,500 products are included in the reductions in Germany, IKEA’s largest market by revenue, while selected products have also been reduced in price in Britain.
“The cost of living is increasing and it’s getting tougher and tougher for many people,” said Juvencio Maeztu, CEO of Ingka, IKEA’s largest retailer.
“For many people, home is a bedroom in a shared house, and it’s even more important to offer storage and organised solutions,” he added.
Cost reductions and smaller stores
IKEA said product redesigns, automation and renewable energy had helped lower costs. The company cited a 70 per cent reduction in packaging costs for its Pax wardrobe range.
The retailer has also opened seven smaller stores in Europe since January as it expands beyond its traditional out-of-town format.
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