How IKEA Is Keeping Its Furniture Affordable

Ingka Group CEO Juvencio Maeztu navigates the tension between maintaining IKEA’s core mission of affordability and ensuring long-term business sustainability during periods of high inflation and geopolitical instability. By intentionally reducing prices by 10% in 2024—a move costing 2 billion euros—the company prioritized customer support over immediate profit margins. This strategy extends to operational resilience, where massive investments in renewable energy have rendered the retailer largely self-sufficient, insulating it from global energy price spikes. While adapting to an omnichannel model by integrating smaller urban stores with traditional large-format locations, the company remains anchored in its long-term vision. The focus remains on providing value-for-money, high-quality home furnishings, emphasizing that the home will remain the most essential human space regardless of future technological or economic shifts.