Ikea Thailand Deepens Price Cuts Amid Weak Demand, Expands Business-Clients Programme
With fiscal 2025 sales up just one percent, Ikea Thailand cuts prices on 2,500 items by twenty-to-twenty-five percent and seeks growth through business-to-business clients and new store formats
Ikea Thailand is launching a major price reduction campaign and widening its business-client services in response to sluggish consumer demand and economic pressures.
The Swedish home furnishing retailer reported that total sales rose by only one percent in fiscal year 2025 (September 2024 to August 2025), citing high household debt and political instability as key challenges.
As part of the “Everyday More Value” initiative, approximately 2,500 products will see price cuts of between twenty and twenty-five percent, nearly double the number of discounted items from the prior price campaign.
The reductions will be maintained across the full year, with individual product prices ranging from as low as nineteen baht to at most two hundred baht.
Ikea Thailand also introduced its “Ikea for Business” programme to serve hotels, offices, property developers and small and medium-sized enterprises.
Pornpak Chintakovit, manager of Ikea for Business Thailand, stated that eighty percent of the programme’s clients are small and medium firms, and twenty percent are larger projects.
Revenue from this segment is expected to rise to one hundred seventy million baht in the current fiscal year, up from one hundred thirty-seven million in fiscal year 2025, with a target of three hundred million baht in annual revenue in four years.
Expansion plans are underway.
The company intends to open a sixth store in Thailand in the Northeast region in July of next year.
The new store will occupy about seven hundred and fifty square metres and cost roughly thirty million baht.
It will be a compact “Life Xpress” format, similar to the recently opened branch in Chiang Mai, in partnership with CP Future City Development Corporation.
The format will offer over three hundred carefully selected items, storage solutions ready for immediate purchase, planning services, and an in-store café called Swedish Bites.
Ikea operates existing stores at Bang Na, Bang Yai in Nonthaburi, Phuket, Phrom Phong in Bangkok, and Chiang Mai.
The company has set a sales growth target of six percent for fiscal 2026, tied to greater investment in its price reduction efforts and its business-to-business ambitions.
The Swedish home furnishing retailer reported that total sales rose by only one percent in fiscal year 2025 (September 2024 to August 2025), citing high household debt and political instability as key challenges.
As part of the “Everyday More Value” initiative, approximately 2,500 products will see price cuts of between twenty and twenty-five percent, nearly double the number of discounted items from the prior price campaign.
The reductions will be maintained across the full year, with individual product prices ranging from as low as nineteen baht to at most two hundred baht.
Ikea Thailand also introduced its “Ikea for Business” programme to serve hotels, offices, property developers and small and medium-sized enterprises.
Pornpak Chintakovit, manager of Ikea for Business Thailand, stated that eighty percent of the programme’s clients are small and medium firms, and twenty percent are larger projects.
Revenue from this segment is expected to rise to one hundred seventy million baht in the current fiscal year, up from one hundred thirty-seven million in fiscal year 2025, with a target of three hundred million baht in annual revenue in four years.
Expansion plans are underway.
The company intends to open a sixth store in Thailand in the Northeast region in July of next year.
The new store will occupy about seven hundred and fifty square metres and cost roughly thirty million baht.
It will be a compact “Life Xpress” format, similar to the recently opened branch in Chiang Mai, in partnership with CP Future City Development Corporation.
The format will offer over three hundred carefully selected items, storage solutions ready for immediate purchase, planning services, and an in-store café called Swedish Bites.
Ikea operates existing stores at Bang Na, Bang Yai in Nonthaburi, Phuket, Phrom Phong in Bangkok, and Chiang Mai.
The company has set a sales growth target of six percent for fiscal 2026, tied to greater investment in its price reduction efforts and its business-to-business ambitions.
