IKEA to lower prices on the Czech market as sales skyrocket

Swedish furniture chain IKEA has revealed plans to reduce prices across a range of products in the Czech Republic. Tímea Münzner, country selling manager for IKEA Czech Republic, disclosed in an interview with Czech News Agency that more than a third of the chain's product range will see a long-term price reduction averaging 8.4 percent.

This price drop will apply to furniture, home accessories, and kitchen appliances. Münzner credited the Czech crown's exchange exchange rate and stabilized supply chains following the Covid-19 pandemic for making this reduction possible. She emphasized that IKEA will continue to monitor market conditions and make future decisions accordingly. The company aims for this discount to be a long-term offering.

Münzner also noted that Czech customers have recently shown strong demand for storage solutions. As a result, selected shelving parts, boxes, and related items will be available at more advantageous prices.

However, Münzner did not comment on whether these price adjustments bring IKEA's product range in line with prices in neighboring countries like Germany and Poland, where many Czechs often seek cheaper goods.

In the previous financial year (September 1, 2021, to August 31, 2022), IKEA experienced a 22 percent year-on-year increase in sales in the Czech Republic, reaching 11.9 billion crowns. Münzner anticipates a similar result for the 2022-2023 accounting period.

To further connect with customers in different regions, IKEA plans to open additional planning studios throughout the country, where customers can interact with products that can be ordered from the larger warehouses. with The newest IKEA planning studio has recently been inaugurated in Olomouc.

This expansion strategy will continue throughout the new financial year, which begins this month. Currently, IKEA operates four large warehouse stores in the Czech Republic, two in Prague, and one each in Brno and Ostrava.

As part of their sustainability initiative, IKEA has committed to delivering customer orders exclusively with emission-free vehicles by 2025. Münzner highlighted that one-third of the company's orders are already being delivered this way.

Tomáš Lukeš, spokesperson for the Association of Czech Furniture Manufacturers, added that despite being the largest furniture chain in the country, IKEA does not overwhelm competition for domestic manufacturers.

While Lukeš predicts a slight decline in furniture production in the Czech Republic this year compared to the previous year, he attributes this to the industry-wide labor shortage. To address this issue, he suggests greater involvement of students through internships and legislation that incentivizes companies, such as through tax incentives.

Lukeš also highlights the importance of investing in automation and digitization, which can ultimately save thousands of jobs. Czech furniture is predominantly exported to Germany, France, Slovakia, the Netherlands, and the United States, while imports mainly come from Poland, Germany, and China.