IKEA will be lowering prices due to better economic performance, and have encouraged other retailers to do the same.
MBL reports that prices will lower by about 2.8%. Þórarinn Ævarsson, the managing director of IKEA in Iceland, told reporters that there are three main reasons for the decision.
First of all, the Icelandic króna has strengthened against the euro, making imports to the country more favourable. Second, the collective bargaining agreement signed earlier this year proved better for management than was initially predicted.
Lastly, tourism has a part to play: the rapidly increasing stream of tourists to Iceland has driven sales up further than they could have imagined.
Þórarinn has also decided to issue a challenge to other retailers in the country, encouraging them to lower their prices as well. He says that it is likely management in other sectors have seen the same kind of returns he has, and there is therefore plenty of room to lower prices for consumers.