IKEA sells less – level 2

21-10-2025 07:00

IKEA sales went down for the second year because the company keeps lowering prices to help people spend less.

Prices are about 10% lower than before, but total sales still fell 1% to 44.6 billion euros. Even so, people bought more products and visited IKEA stores more often.

IKEA’s boss, Jon Abrahamsson Ring, said the company can plan for the long term and wants to help customers who have less money. In the US, IKEA raised some prices because of high tariffs, but it tries to pay some of the extra cost itself.

Ingka Group, the main IKEA partner, also had a 1.6% drop in sales but hopes for better times soon.

Difficult words: long term (over a long period of time, not just for now), franchise (a business that has permission to use another company’s name, products, and system), tariff (a tax on imported things).

You can watch the original video in the Level 3 section.

How did IKEA respond to high tariffs in the United States, and what did it do about the extra costs?

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