Ikea is betting that spending over a billion dollars to slash prices will pay off

Ingka Group said it was slashing prices for hundreds of Ikea products in Europe. Riccardo Milani / Hans Lucas / AFP via Getty Images Ikea is cutting prices on some popular products, like the Billy bookcase and Kallax storage units. Ikea's operators said they are investing 1.2 billion euros to reduce prices in Europe. Ingka Group's CEO said this will make Ikea more affordable, even if it means lower margins for the company. Ikea's operators are betting more than a billion dollars on slashing the prices of some of its most popular products. Ikea's largest franchise owner, Ingka Group, said Tuesday it would invest 1.2 billion euros, or about $1.39 billion, with other Ikea franchises and the Inter Ikea Group to lower prices for consumers across Europe. In Germany, more than 1,500 Ikea products will have their prices lowered by 20%, per the group's press release. Customers in the UK will see prices for Ikea's iconic Billy bookcase drop by 28%, and Italian customers will get a 29% price cut on Ikea's modular Kallax storage units. "The investment is 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