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IKEA annual sales slump, commits to price cuts amid weak housing market

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IKEA annual sales slumped 5% as consumers pull back on furniture purchases amid a weak housing market, according to an earnings report released Thursday.

IKEA annual sales have slumped as consumers pull back on furniture purchases amid a weak housing market, according to an earnings report.

“In all our markets we experienced a slowdown of the economy and a slowdown of the home furnishing industry, almost simultaneously,” Ingka Group CEO Jesper Brodin said.IKEA started cutting prices after seeing a drop in store visits and sold quantities. The more affordable prices improved store traffic and the amount of products sold, Brodin said.

The company expects to see a boost in sales next year thanks to lower interest rates in countries around the world.

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