# IKEA stores owner Ingka says campaigns help boost store visits and sales
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-02-14
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: IKEA boosts sales with price cuts and promotions
Meta Description: Discover how IKEA's proactive strategies in lowering prices and promotions led to increased visitor numbers and sales, surpassing expectations.
URL: https://financedigest.com/ikea-stores-owner-ingka-says-campaigns-help-boost-store-visits-and-saleshtml

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By Anna Ringstrom and Marie Mannes

STOCKHOLM (Reuters) – Price cuts at IKEA as well as promotional campaigns which the budget furniture giant normally doesn’t do have boosted footfall and sales, the CEO of the company which owns most of its stores told Reuters, as it seeks to offset weak consumer confidence.

Cost inflation and recession fears are causing households to rein in spending and in November the IKEA brand owner Inter-Ikea said campaigns and lower prices on popular ranges to keep customers coming would be key this year.

Jesper Brodin, [CEO of IKEA stores owner](https://www.financedigest.com/5-reasons-why-you-need-to-step-into-your-ceo-role-as-a-small-business-owner.html "5 Reasons why you need to step into your CEO role as a small business owner") Ingka, said visitor numbers and sales volumes were up so far in the group’s fiscal year through August 2023.

We are currently [seeing growing visitor numbers and growing sales](https://www.financedigest.com/switzerlands-clariant-sees-slight-sales-drop-in-2023.html "Switzerland’s Clariant sees slight sales drop in 2023") … It started late spring, summer, and has continued,” Brodin said, adding that current trading was better than feared.

“Part of the (increase) … has to do with inflationary [impact on prices](https://www.financedigest.com/german-gas-commission-agrees-proposals-to-ease-impact-of-soaring-prices.html "German gas commission agrees proposals to ease impact of soaring prices"), but we are doing above index on quantity,” he said.

Resorting to [promotion campaigns](https://www.financedigest.com/synechron-launches-social-awareness-campaign-ittakesalltypes-to-promote-diversity-and-inclusion-at-work.html "Synechron Launches Social Awareness Campaign #ItTakesAllTypes to Promote Diversity and Inclusion at Work") would hopefully be a temporary initiative, Brodin added. “They are not a new commercial strategy. My anticipation is that in a year or two we will (again) much more be looking at medium- and [long-term investments](https://www.financedigest.com/how-to-invest-in-gold-and-other-precious-metals-for-long-term-profit.html "How to invest in gold and other precious metals for long-term profit") in price.

He declined to [say whether prices](https://www.financedigest.com/buy-off-plan-to-beat-stalling-house-prices-and-falling-rental-yields-says-jean-liggett.html "“Buy off-plan to beat stalling house prices and falling rental yields” says Jean Liggett ") on average were up or down so far in the current fiscal year, adding that pricing varied across markets and products.

Last fiscal year, IKEA raised prices to partly compensate for [soaring supply costs](https://www.financedigest.com/amazon-other-retailers-revamp-free-shipping-as-costs-soar.html "Amazon, other retailers revamp ‘free’ shipping as costs soar"), although it started lowering some prices towards the end of the period as stocks started filling up and supply chains recovered.

Some costs such as gas prices have started to decline as well, prompting some retailers to consider [price cuts](https://www.financedigest.com/tesla-posts-record-quarterly-deliveries-after-price-cuts-up-4-from-q4.html "Tesla posts record quarterly deliveries after price cuts, up 4% from Q4").

Brodin said Ingka was currently seeing no signs of weakening demand, or of any of its markets heading towards a deep [recession this year](https://www.financedigest.com/uk-to-avoid-recession-this-year-but-outlook-still-weak-bcc-says.html "UK to avoid recession this year but outlook still weak, BCC says").

He predicted [supply levels would gradually keep normalising in coming months, after Ingka last year was not able to match demand due to the global supply chain](https://www.financedigest.com/how-to-bring-immediacy-back-to-the-supply-chain-with-faster-payments.html "How to Bring Immediacy Back to the Supply Chain With Faster Payments") crisis.

(Reporting by Marie Mannes and Anna Ringstrom; Editing by David Holmes)


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