Ikea cuts prices on hundreds of products in Europe amid cost-of-living pressures

Swedish furniture giant Ikea is cutting prices across hundreds of products in Europe to woo customers struggling with deepening cost-of-living pressures.

Ikea has seen revenue decline over the past two years as the rising cost of living reduces people's ability to invest in new furniture and home renovations.

The company is spending €1.2bn (£1bn) on the price cuts to items including the Billy bookcase and Kallax storage units, with reductions of up to 28% on certain products.

Ikea said it could make the cuts by making savings throughout the supply chain, such as packaging costs, but acknowledged profits may take a hit.

Ingka, the franchisee which operates most of Ikea's European stores, said the cuts were "not an activity or short-term campaign".

"It's about making IKEA more affordable when people need it most, even if it means accepting a lower margin," said Juvencio Maeztu, chief executive of Ingka. "The cost of living is increasing and it's getting tougher and tougher for many people."

He added: "For many people, home is a bedroom in a shared house, and it's even more important to offer storage and organised solutions."

Ikea has reduced its prices several times in recent years, even as it caused a hit to the company's revenue and profit in its most recent earnings report.