IKEA’s Russian Prices Go Down

27 January 2017 (13:14)

UrBC, Moscow, January 27, 2016. IKEA announced a price decrease on January 26, Vedomosti refers to General Director IKEA Russia Walter Kadnar as saying.

Prices will be reduced by 15% to 20% for about 20% of the retailer’s product range, that is, 1,800 different items. For some items, the price decrease will come to 40%.

Kadnar points out this is a long-term program rather than just a sale or a promotion campaign. The main factor behind this is the launch of IKEA’s fifth furniture factory in Russia last fall. In fact, most of the price decreases will involve kitchen furniture and wardrobes, since these are these items that the new factory focuses on.

The stabilizing ruble exchange rate was also a contributing factor, Kadnar says.

In the meantime, Infoline Analitiki DG Mikhail Burmistrov is positive that it was the strengthening ruble that was primarily the cause of the company’s new pricing policy. For one, Apple also announced a price decrease campaign earlier, saying it was because of the strengthening ruble exchange rate.

Additionally, IKEA is starting to feel increased competition from the other market players such as Hoff and regular supermarket chains (as far as household items are concerned), Burmistrov feels.

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