IKEA Canada announced global price cuts
In solidarity with Canadians' financial hardship, the Swedish retailer is making thousands of products more affordable.
In response to the rising cost of living for Canadians, IKEA Canada has announced significant price cuts on its products. The retailer plans to reduce the cost of more than a thousand items in a major investment. This decision is part of the company's broader strategy to support the financial well-being of Canadians.
IKEA's founding principle
Despite the increased costs faced by all business sectors, IKEA is committed to cutting prices wherever possible. The retailer hopes that lower prices will make shopping at IKEA even more affordable.
"Securing the lowest price has been a pillar of the IKEA brand’s Democratic Design philosophy for the past eight decades," the company said.
Cheaper items will include items popular with Canadians, such as the BILLY bookcase (from CA$ 249 to CA$ 199) and the STRANDMON armchair (from CA$ 399 to CA$ 349).
Jesper Brodin, CEO of Ingka Group, which owns most IKEA stores worldwide, expressed the company's determination to support its customers despite the economic turmoil. At the Reuters Global Markets forum in Davos, he stressed that the current year would not be about maximizing profits, but about supporting people, even if this would result in less profit for the company.
Macroeconomic context: an assessment by the Bank of Canada
The initiative coincides with the Bank of Canada's announcement to keep its key rate at 5% after a series of increases last year — to combat inflation. The latest data show a slight increase in inflation in December compared to November, although it is already below the peak reached in June 2022.
Bank of Canada Governor Tiff Macklem expressed confidence in current interest rates, but admitted that further increases are not ruled out if inflation does not continue to fall. Macklem cautioned that the path to the 2% inflation target would be "gradual and uneven".
