SINGAPORE: Ikea Singapore lowered the prices of 144 products in September to make them more easily affordable for “many Singaporeans looking to get the most for their home”. The furniture giant has also revealed plans to further reduce the costs of over 60 more items by April 2024, the Straits Times reports.
This development is in line with Ikea’s global price reductions. Jon Abrahamsson Ring, the CEO of Inter Ikea Group, the worldwide franchiser of the brand, stated, “I think 2023 was the year when we turned the corner on prices and started lowering them again.”
He cited several factors contributing to this decision, including the ongoing global cost-of-living crisis and relief from the cost pressures on their supply chain. Factors such as stabilising raw material prices and transportation costs, which had surged earlier in the year, have helped the company offer more competitive prices.
The retail sales figures for Ikea in the fiscal year 2023 were impressive, reaching a record-breaking €47.6 billion (approximately S$68.7 billion). This remarkable performance was attributed, in part, to price increases implemented in the previous year. Ikano Retail, the franchisee responsible for bringing Ikea to Singapore, Malaysia, Thailand, Mexico, and the Philippines, reported a turnover of €1.08 billion. In Singapore, the three Ikea stores generated sales of S$384.2 million.
While the current price reductions are welcome news for consumers, it’s important to note that the price cuts are related to wholesale prices – the prices charged to retailers, including Ikea Singapore. The final in-store prices may vary from one market to another, influenced by various factors specific to each region.
In Singapore, this strategy has reduced prices by up to 20% on select items. For instance, the price of a Malm chest of six drawers has dropped from S$249 to S$199, and the Kallax shelving unit is now priced at S$89, down from S$109. These reductions aim to address the financial concerns expressed by Singaporeans in Ikea’s 2022 Life At Home report. Based on a survey of 1,000 Singaporeans, the report found that 74% of respondents expressed concerns about their household finances.
Gerard Jansen, Ikea Singapore’s retail director, stated, “That’s why we work hard to keep prices as low as possible on essential and best-selling items, so these savings count for the many Singaporeans looking to get the most for their home.” He emphasized the brand’s commitment to being the most affordable, accessible, and sustainable home furnishing retailer in the country.
Despite the price reductions in the home furnishing and storage product categories, it’s important to note that this initiative does not affect the prices of food products or the food served in Ikea’s restaurants.
Customers have warmly welcomed these price reductions.
Desmond Wang, a customer in his 30s, expressed his delight at staying within budget and purchasing more items during his recent visit to Ikea. He originally planned to make two trips to the store to accommodate his budget.
Another customer, Susanna DeCruz, was pleasantly surprised to find that the furniture items she was interested in had become more affordable. She made her purchases during her visit despite initially intending only to window-shop.