Ingka Group, the largest retailer of Ikea, has reported a significant decline in full-year profit. The company attributes this downturn to recent price cuts and challenging economic conditions.

The financial year ending in August saw a 37.5% drop in operating profit for Ingka Group, falling to €1.3 billion ($1.4 billion). Additionally, revenue decreased by nearly 6%, totaling €41.8 billion. Despite a slight increase in expenses during the same period, the overall financial performance reflects the impact of the current economic landscape on consumer spending and retail operations.

These challenges have prompted Ingka Group to evaluate its strategies and adapt to the changing market conditions. The company remains focused on providing affordable and sustainable home furnishing solutions to its customers while navigating the complexities of the global economy.