Ikea’s annual profit almost halved to the second-lowest level in at least a decade as the flat-pack furniture pioneer warned that trade barriers from US president-elect Donald Trump would hurt its push to cut prices. Net profit at Ingka Group, the main Ikea retailer that runs 90 per cent of the group’s stores, fell from €1.5bn to €806mn in the year to August due to a campaign to shield consumers from higher inflation, as well as the cost of its exit from Russia.
Ikea was unnerved by having to raise prices due to surging inflation following the pandemic as it traditionally reduces the cost of products steadily over time. “It was a conscious decision not to optimise profit but to maximise affordability for the many people,” said Maeztu, adding that the company’s structure and ownership enabled it to make long-term decisions.