IKEA says that there will still be price cuts, despite shipping disruptions in the Red Sea increasing costs, writes Divya Chowdhury for Reuters.

The budget furniture retailer said that it has enough sufficient stocks to continue as planned.

“Our commitment is to make sure that we prioritize investing in lower prices for our customers,” Jesper Brodin, CEO of Ingka Group, which owns the majority of IKEA stores globally.

The disruptions are being caused by attacks on ships by Houthi militants in Yemen. Vessels are being rerouted which means longer and more costly journeys.

Brodin said that while lowering prices right now may hurt profits, this isn’t the time to maximize profits. Customers are already under financial pressure.

“This is a year to try to navigate on a thinner profit,” he explained.

At the end of last year, IKEA announced it was lowering prices on hundreds of products for customers and giving many employees a bonus as a thank-you for a record-high sales year in 2023.

Read more about IKEA’s planned price cuts despite rising supply chain costs caused by shipping disruptions in the Red Sea at Reuters.

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