Newscasts - IKEA sales fall for second year as retailer makes price-cutting push

Wayfair

17/10/2025 09:21

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Source: 'Reuters - Business videos'

Description: IKEA's annual sales fell for a second consecutive year, it reported on Thursday, as the budget furniture retailer stuck to a strategy of cutting prices to attract cash-strapped consumers and gain market share in a fiercely competitive market. Ciara Lee reports.

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Video Transcript:

IKEA's annual sales fell for a second consecutive year. Reporting its results late Thursday, the budget retailer stuck to a strategy of cutting prices to attract cash-strapped consumers and gain share in a fiercely competitive market. Having hiked prices during the pandemic due to supply chain disruptions, the world's biggest furniture retailer has cut prices by 10% on average over the past two years. That's as high inflation and weak housing markets worldwide dented consumers demand for furniture and homewares. Global IKEA retail sales in the 2025 financial year, which ended on August 31, fell 1% to just under $52 billion. The total number of products sold, however, was up 3% with customer numbers and store visits also up. In the US, IKEA has raised prices on some products due to higher tariffs on imports. The firm competes there with Wayfair and Walmart, but more of its furniture is made in factories in Europe, giving it a slight advantage over retailers relying on imports from China, which face a higher tariff rate.