If you look at old-timey built in bookcases, they have a horizontal board that goes along the whole bottom of the back and sides of each shelf. The vertical supports can bow outward, the thick pegs can be too wide for the wood above the pegs to support the books, which is what bookcases are FOR. Some shipping giants are rerouting vessels around the southern tip of Africa, a longer and more expensive journey.I want to add about Ikea or any other products where weight is involved, it’s not enough for the shelves to be wood or for the closet bar to be metal.Īll the weight must be supported at the point(s) where it/they join(s) to the vertical surface, whether that is a peg, a screw, a corbel, a bracket, etc.Įvery component has to be strong. Red Sea issues won't change plans: CEOĪttacks on ships travelling the Red Sea by Houthi militants in Yemen, who say they are acting in solidarity with Palestinians, have disrupted global commerce. "If, all of sudden, they see they just sold 5,000 more lamps because they lowered the price by $20, they're going to get some real concrete data that says, 'These are the consumers that are price-sensitive, and we're going to target our ads to them,'" she said. She pointed out that Ikea may gain valuable market insight from how consumers react to the discounts. Rourke, the marketing professor, shares that perspective. "The offset in volume might actually provide some cushion against the reduction in profit margins," said Stephens, who believes Ikea may see an increase in total sales. These wine glasses were already marked down on a visit to Calgary's Ikea store on Thursday. In Canada, sales increased by nearly 11 per cent, to $2.9 billion. However, Ikea may have room to manoeuvre in that respect. The company's retail sales and profits went up substantially in its 2023 fiscal year, which ended Aug. "There is the downside that you're not making as much per unit that you're selling." "The finance person at Ikea, you're probably a little nervous," said Rourke, who teaches marketing and business administration at St. Ikea could be leaving money on the table by making this move, according to marketing professor Nicole Rourke. "This investment is not a time-limited sale or offer," wrote the company. The company said it's investing $80 million in lowering prices on more than 1,500 products. In a statement emailed to CBC News, Ikea admitted that "many factors" go into whether a price can be reduced. The dark blue Billy bookcase with glass doors, for example, is dropping in price by about 20 per cent.īut not all bookcases - BIlly or otherwise - are dropping in price. That being said, some of Ikea's price decreases are more substantial than that rate of deflation. This means that furniture prices actually didn't show the effects of inflation, but the opposite - deflation. But as inflation eases, prices will remain high and some economists say that's a good thing. While the consumer price index showed that overall inflation was 3.4 per cent from December 2022 to December 2023, the rate of inflation for furniture over the same amount of time was -2.7 per cent.ĭuration 2:07 Canadians have been paying more for everything as prices surged during the pandemic. Ikea's move comes as furniture prices in Canada have dropped, according to Statistics Canada. Furniture prices in Canada actually deflated in 2023 And this is a big sword to wield … certainly a very difficult thing for virtually any competitor to match," Stephens said. "There aren't many companies that would have the kind of leverage and leeway within their operations that Ikea has. Stephens suggested competitors might have difficulty catching up. This gives Ikea a greater ability to unilaterally control costs, with "control over virtually every aspect of the supply and value chain," according to Stephens, who pointed out he believes the company would want to leverage that. 25, (Anis Heydari/CBC)ĭoug Stephens, founder of the Retail Prophet consulting firm in Toronto, pointed out that Ikea has more ownership of what goes into its products than other companies - it's involved in everything from manufacturing to shipping to the retail stores. Ikea's website shows price reductions as of Jan.
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