Ikea sales drop for the third consecutive year

Ikea just can’t seem to get its growth back on track. The Swedish furniture giant saw its global revenue decline for the third year in a row and is now investing 1.2 billion euros in price cuts. The company has already cut 850 jobs and is now accelerating the rollout of smaller stores.

Prices down by up to 25%

Ikea’s global retail sales fell by 2% to 43.8 billion euros in the fiscal year ending in August, compared with 44.6 billion euros a year earlier. Weak sales in China and the Middle East weighed particularly heavily on the results, while Europe and Latin America did show growth. This was reported by Inter Ikea Group, the brand’s owner and supplier to franchisees.