Ikea Austria lowers prices and invests despite the decline in sales

Ikea Austria lowers prices and invests despite the decline in sales

in Vienna, Ikea Austria made considerable investments in the pricing of more than 5,300 products in the past financial year. These price adjustments, which make up around 45 percent of the total range, led to an average double -digit million amount and a strategic step that included the conscious waiver of sales gains. The record year of 2022/23 could not be achieved, but this is within the framework of expectations. The decline in sales of around five percent was compensated for by an increase in the market share to 14.6 percent, which corresponds to an increase of 1.4 percent.

Visitor numbers in stationary shops rose by over two percent to more than 13 million, while the online share of sales grew to 27.4 percent. Alpaslan Deliloglu, the CEO and Chief Sustainability Officer from Ikea Austria, said that the last twelve months had been shaped by numerous challenges. Therefore, the goal was to help people in Austria in economically difficult times with inexpensive products.

long -term price adjustments

In the financial year, in which gross sales of 964 million euros were achieved, Ikea sustainably changed its pricing policy. Deliloglu explained that the company had specifically waived profit optimization in order to permanently reduce prices for a large part of the range. In September 2023, Ikea had already announced that I would continue to support sales prices and to consciously work with lower profit margins in order to relieve customers in financially tense times. Average the price reduction was around 15 percent for the affected products.

The increase in the market share, despite the sales, is primarily possible by around 6.2 percent by decline in the entire market for residential and furnishing products. This shows that, despite challenges, Ikea is strategically well positioned to maintain competitiveness.

investments in the future

in parallel to the price cuts, IKEA Austria made investments of around 37 million euros to improve existing locations and services. Planning studios in the Donau Center in Vienna-Donaustadt and in the Auhof Center in Vienna-Penzing were now opened. These measures are intended to help increase the attractiveness of the brand and attract customers.

The finance officer of Ikea Austria, Nicole Reitinger, expressed optimistic about future development. For 2025, she expects to relax in the industry, since lower interest rates should stimulate the mood of consumption and lead to increasing demand. Ikea's proactivity and adaptability in a challenging market environment are clearly visible, and the coming months could be decisive for the final return to stable growth. For more information about the current situation at IKEA Austria, Read the article on medianet.at .