Reluctance to buy: Ikea achieved lower sales

Reluctance to buy: Ikea achieved lower sales

Ikea is known for furniture that you can assemble yourself.
Ikea CFO Nicole Reitinger

The Swedish furniture company Ikea is feeling the effects of the recession-related purchasing reluctance and generated slightly less revenue in Austria in the 2023/24 financial year (until the end of August). Gross sales fell by almost 5 percent to 964 million euros compared to the record previous year. The furniture chain said in a press release on Thursday that they had invested a “mid double-digit million amount” in price reductions and thereby “consciously sacrificed sales, margins and profits”.

In the past financial year, Ikea reduced the prices of more than 5,300 products in Austria – 45 percent of the entire product range. The average price reduction for all products was around 15 percent. They want to “support the people in Austria in the best possible way with affordable products in financially difficult and turbulent times,” said Ikea Austria boss Alpaslan Deliloglu. In general, the furniture industry is feeling the effects of the slump in consumption. “We continue to perceive a high level of purchasing reluctance that affects our entire industry and the entire retail sector,” said Ikea Austria CFO Nicole Reitinger, who comes from Alkoven. Since the “permanent price reductions” were implemented, the “number of units sold for many items” has increased again.

Ikea CFO Nicole Reitinger
Image: IKEA

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Ikea CFO Nicole Reitinger
Image: IKEA

Source: Nachrichten

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