IKEA Responds To Increased Revenue - By Lowering Prices - The Reykjavik Grapevine

IKEA Responds To Increased Revenue – By Lowering Prices

Published August 19, 2015

Main photo by
Mtaylor848/Wikimedia Commons

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.

Support The Reykjavík Grapevine!
Book your day tours in Iceland right here!

Go travel with Grapevine tried and recommended tours by Grapevine. Fund Grapevine journalism by booking with us.


Show Me More!