Ikea is lowering prices on hundreds of products across Europe to help customers dealing with rising living costs. The move comes as the company has seen a drop in revenue over the past two years, partly due to people spending less on new furniture and home improvements. The price cuts, which include popular items like the Billy bookcase and Kallax storage units, are expected to cost the company €1.2 billion (£1 billion). Some products will see price reductions of up to 28%, allowing customers to buy essential home items at a lower cost. While these cuts will help consumers, they may also reduce the company's profits. Ingka, the franchisee that runs most of Ikea’s European stores, emphasized that the price reductions are not a temporary promotion. Juvencio Maeztu, Ingka’s chief executive, said the move is meant to make Ikea more accessible during a time of economic difficulty, even if it means accepting lower profit margins. Maeztu highlighted that for many people, a home is a shared space, and having affordable storage and organization solutions is more important than ever. The company is also adjusting prices slightly depending on the country, with specific reductions in the UK, such as the Kallax shelving unit dropping from £60 to £49. In addition to price cuts, Ikea is trying to attract new customers by opening smaller stores in high-traffic areas like London’s Oxford Street and Brighton’s Churchill Square. These smaller stores aim to bring the brand closer to urban consumers. The company also launched its own second-hand marketplace in 2024, offering an alternative to platforms like eBay and Facebook Marketplace. This strategy reflects a broader effort to remain competitive in a challenging market. Consumer confidence in Europe is currently at its lowest point in nearly three years, according to EU data, driven by concerns over inflation and living costs. In the UK, however, there is a slight increase in consumer optimism, partly due to a recent truce in the Middle East. Analysts, though, warn that rising inflation and living costs could still negatively impact confidence in the future. With over 500 stores worldwide, Ikea has become a household name, known for its minimalist, self-assembled furniture. However, the company has faced criticism for promoting a culture of disposable furniture and for using excessive packaging, which environmentalists argue contributes to waste.