Ikea’s revenue hit as it spent €2 billion slashing prices. Here’s how it plans to lure more customers to its furniture and meatballs

people walking in and out of an Ikea store (Credit: Xavi Lopez—SOPA Images/LightRocket/Getty Images)

Ikea’s focus last year was helping customers struggling with a high cost of living—even if that hurt its revenue. It invested €2.1 billion to achieve this, coupled with several rounds of price cuts worldwide. 

Ingka Group, Ikea’s parent company, reported a 5% drop in the retailer's sales to €39.6 billion for the 12 months ending August 31, 2024—the first drop since the pandemic.