Ikea cuts food prices to combat cost-of-living crisis

In response to rising economic concerns, global home goods retailer Ikea announced significant reductions in food prices across its restaurants. This initiative, aimed at assisting customers facing a cost-of-living crisis, includes a temporary 50 percent price cut on weekdays, along with free meals for children. The decision to implement these measures comes as consumer confidence in Ikea has notably declined, prompting many customers to tighten their spending. Tolga Önci, the Chief Operating Officer at Ikea Retail, emphasized the importance of adapting to customer needs during these challenging economic times. Additionally, the company is planning to expand its menu offerings, introducing new items like Asian cuisine and falafel, in an effort to diversify its food options. Despite these reductions, Ikea has previously reported that efforts to enhance affordability last year cost the company approximately 2.1 billion euros. Nonetheless, Ikeas' commitment to maintaining its expansion plans remains firm, with intentions to open 58 new stores worldwide by August 2025, including the first location in Seoul, South Korea. Addressing the ongoing impact of high tariffs on imported goods, Önci noted that while Ikea has managed to absorb some of the tariff costs, these fees pose long-term challenges to keeping prices low and affordable for consumers. The uncertainty raised by these tariffs, particularly those imposed on key trading partners such as Canada, Mexico, and China, may increase financial stress on customers, ultimately affecting consumer spending behaviors.