IKEA Canada to cut prices on more than 1K items. Here’s what you could save
IKEA Canada plans to cut prices on more than 1,000 products this year as part of a “multi-million-dollar” investment in the business in the midst of growing cost of living concerns for Canadians.
The furniture retailer said in a news release Wednesday it will be slashing prices throughout the year, citing an internal report that says household finances and disposable income are a growing concern for Canadians.
“Securing the lowest price has been a pillar of the IKEA brand’s Democratic Design philosophy for the past eight decades,” the company said.
“Despite the need to adjust some prices that reflect the increased costs facing businesses, retailers, and consumers the retailer is committed to lowering prices where possible and looks forward to taking price reductions that make it even more attainable for the many Canadians to shop with IKEA.”
IKEA Canada added some of the products reduced in price include the BILLY Bookcase with glass doors at $199 from $249, and the STRANDMON Armchair at $349 from $399.
IKEA’s announcement came as the Bank of Canada said it is holding its key lending rate at five per cent to start the year.
The hold comes after a significant rate hikes to cool down inflation, which rang in at 3.4 per cent in December. That was slightly up from 3.1 per cent in November, but down sharply from its 8.1 per cent high in June 2022.
Bank of Canada governor Tiff Macklem told reporters Wednesday that conversations at the central bank have shifted from debating whether interest rates are high enough to how long the central bank needs to keep rates at current levels.
Macklem said that rate hikes to date have worked to relieve spending demand, but cautioned that rates could still rise if inflation does not continue
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