IKEA Plans To Cut Prices In 2024 & The CEO Says It's 'Not A Year To Optimize Profits'

Despite the rising prices you might be seeing in many stores lately, Canadians can breathe a sigh of relief when it comes to furniture and home decor because IKEA still plans to lower prices in 2024, regardless of inflation.

The home goods store has committed to keeping its prices low, even in the face of a number of obstacles.

Why you should care: If IKEA's price cuts go as planned, you can expect to shop at their locations at lower prices, which means you can keep your Pinterest boards around because decorating might not be so costly in 2024.

What they're saying: Jesper Brodin, CEO of Ingka Group, which owns most IKEAs globally including all locations in Canada, told Reuters on Monday that their "commitment is to make sure that we prioritize investing in lower prices for our customers."

"This is not a year for us to optimize profits," Brodin added. "This is a year to try to navigate on a thinner profit, but to make sure that we support people."

ICYMI: The ongoing conflicts in the Middle East and related transport disruptions in the Red Sea — one of the world's busiest shipping routes, connecting Europe and Asia — have been causing a spike in global transport costs. However, Ingka Group has shared that it's investing over 1 billion euros (CA$1.46 billion) to lower IKEA prices in 2024.

While this move could impact profits, the company seems to be committed to offering customers low prices.

"People have thin wallets, but they still have needs, dreams, and frustrations," Juvencio Maeztu, Ingka Group's deputy CEO and CFO, told Fortune in November. "That's why IKEA has become a destination for those who want to maximize the value of their money. IKEA is made for crisis, so to speak."

What comes next: It's still unclear when those lower prices will go into effect and how much of a drop consumers can expect in IKEA stores. But keep your eyes peeled for updates.

Keep reading: IKEA already promises low prices, and there are a whole bunch of items currently in store that would instantly elevate your home and are already being sold at affordable prices. Here are a few Canadian must-haves that you should check out!