Ikea’s sales took a hit in 2024 as the flat-pack furniture seller lowered prices in a bid to remain affordable for its customers.

The Swedish furniture giant’s sales fell 5.3% to $49.34 billion in the 12 months to Aug. 31, after lowering the prices of its goods to encourage shoppers into stores.

IKEA annual sales fell 5% after the Swedish budget homeware retailer cut prices in a bid to attract more shoppers and maintain its share of a shrinking home furniture market, but it expects a recovery next year.

Last year, Ikea slashed prices to give inflation-weary customers a break, but revenue fell for the first time in four years.

Ikea reported Thursday that its annual sales fell in value after the world's biggest furniture retailer lowered prices to revive traffic at its online and brick-and-mortar stores.

The Inter IKEA Group has reported a 5.3% drop in IKEA retail sales revenue for the financial year 2024 (FY24), which totalled €45.1bn ($49.3bn) - down from €47.6bn in FY23. The company attributed the decline primarily to its strategic decision to lower prices across its global markets,

In an escalation of the bidding war for Tritax Eurobox, the commercial landlord snubbed Segro and backed a new £1.1bn offer from Brookfield Asset Management.