IKEA is busy cutting prices while everything else gets expensive—and the group’s CEO says it wasn’t ‘rocket science’ to make that call

Fortune

It’s rare to go shopping these days without feeling like buying basic things has burned a hole through your pocket. But furniture company IKEA wants to be the exception.

Transcript

00:00 As prices rise across the board, IKEA is cutting its prices instead.

00:04 The Swedish company has 471 stores across the world

00:08 and is on a mission to make home furnishings more affordable despite rising costs.

00:13 According to Jesper Brodin, CEO of IKEA's parent company, the decision is not rocket science.

00:20 In an interview with CNN, Brodin explained,

00:22 "When we lower our prices in times like now when people have less money in their pockets,

00:27 interest rates are up and so forth, we're growing customers, we're growing market share,

00:31 and we're actually growing quantity."

00:33 Inca Group, the parent company of IKEA, has even been setting aside $1.1 billion

00:39 to absorb price increases rather than passing them on to the customer.

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