IKEA Thailand, the local arm of the Swedish furniture giant, is adjusting its strategy to counter economic challenges by slashing prices and expanding into business services.
The company is targeting demand from hotels, offices, property developers, and small and medium-sized enterprises (SMEs).
Leonie Hoskin, retail manager of IKEA Thailand and Vietnam, said fiscal 2025 (September 2024 to August 2025) was a difficult year. She pointed to high household debt and political instability as key pressures on consumer spending and the overall business climate.
As a result, total sales in fiscal 2025 edged up by only 1%. IKEA has now set a more ambitious target of 6% growth in fiscal 2026, backed by higher investment in price-cutting campaigns.
The latest initiative reduces prices by 20–25% on 2,500 products, nearly double last year’s figure, and holds those discounts for the entire year. Under the “Everyday More Value” campaign, products are priced from 19 baht to a maximum of 200 baht.
“This year’s reductions are deeper than in previous years, ensuring that everyone can access quality, well-designed products at affordable prices,” Ms. Hoskin said.
Alongside its retail efforts, IKEA Thailand has introduced a business-to-business (B2B) service. The new programme offers full design, furniture selection, and after-sales solutions to hotels, offices, property projects, universities, restaurants, and cafés.
“This is a growing market, supported by the steady expansion of the real estate sector and the constant renovation of hotels and office spaces,” said Pornpak Chintakovit, manager of IKEA for Business at IKEA Thailand.
IKEA expects revenue from its B2B operations to reach 170 million baht this year, up from 137 million baht in fiscal 2025. The company is also targeting 300 million baht in annual revenue from the segment within four years.
“Our B2B customers comprise 80% SMEs and 20% project customers,” Ms. Pornpak said.
Looking ahead, IKEA will open its sixth Thai store in the Northeast next July. The outlet will cover 750 square metres and require an investment of about 30 million baht.
The store will follow the “Life Xpress” concept recently launched in Chiang Mai, developed in partnership with CP Future City Development Corp, part of the Charoen Pokphand Group.
The compact format features over 300 carefully selected products, focusing on storage solutions available for immediate purchase. Customers can also consult with planning experts and visit the Swedish Bites café.
IKEA currently operates five branches in Thailand, including Bang Na, Bang Yai in Nonthaburi, Phuket, Phrom Phong in Bangkok, and Chiang Mai.
