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Results: Ikea has suffered a drop in sales after cutting prices to tempt struggling shoppers
Ikea has suffered a slump in sales after cutting prices to tempt hard-pressed shoppers into spending.
Revenue fell 5.3 per cent to £38bn in the 12 months to the end of August, the first drop since 2020, as the Swedish company cut prices on more than 3,000 products.
Sales of the British subsidiary fell 6.8 percent to 2.3 billion pounds. Ikea linked the fall to a “strategic decision to prioritize affordability” as it invested more than £117m in lowering prices.
Peter Jelkeby, chief executive of Ikea UK, said: “In a year of economic uncertainty, our priority was clear: supporting our customers. Despite the reduction in sales volume, our long-term priority remains to continue lowering prices. prices.’
Ikea UK said it was continuing its expansion programme, with stores on London’s Oxford Street and Brighton city center due to open next year.
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