Amid ongoing pressure from higher living costs, IKEA has committed to making home furnishings more affordable, with Ingka Group, the largest IKEA retailer, IKEA franchisees and Inter IKEA Group investing €1.2billion to lower prices across Europe.

These investments underscore the retailer’s focus on offering shoppers value for money through good design, quality and sustainable choices, and supports its vision of creating “a better everyday life”, it said.

“Keeping prices low is our long-term commitment and part of our promise to side with the many people. The investment is not an activity or short-term campaign – it’s about making IKEA more affordable when people need it most, even if it means accepting a lower margin,” said Juvencio Maeztu, CEO of Ingka Group.

The initiative concentrates on Europe, where prices will be cut starting from 01 Sep 2026, with average price reductions ranging from 15% to 25%. In the UK, prices will be reduced on hundreds of home furnishing products and accessories, including the iconic BILLY bookcase by 28% and the TROFAST storage combination by 24%.

“At the same time, we are investing to make IKEA more accessible by opening many smaller stores as part of our omnichannel experience,” Maeztu continued.

To support affordability beyond Europe, Ingka Group will also invest €70million to help offset inflationary and currency pressures in Asia and North America, helping keep prices as low as possible for customers.