IKEA’s main franchise operator, Ingka Group, is investing EUR 1.2 billion with other franchisees and Inter IKEA Group to reduce prices across Europe from September 1. Selected products will be discounted by an average of 15% to 25%, with the scale varying by market. More than 1,500 items in Germany will fall by an average of 20%, while reductions average 22% across hundreds of products in Italy. The initiative follows earlier price cuts since 2023 and comes as European consumer confidence remains near a three-year low. Ingka is also allocating EUR 70 million to address currency and inflation pressures in North America and Asia, although it has not said whether that funding will produce direct price cuts. The company says it will accept lower margins to support affordability, while its recent results show lower revenue but higher profit.