IKEA Pulls The Plug On 5% Discount

woman looking for IKEA discount
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Furniture retailer IKEA announced it will drop its hugely popular 5% everyday discount for “IKEA Family” members starting February 1, 2024. 

IKEA launched its loyalty program in 1984 in Sweden and expanded it to the U.S. in 2011. In 2022, it introduced a 5% everyday storewide discount as an additional perk for loyalty members. This storewide discount is unique to the U.S. and unavailable at other IKEA stores worldwide.

However, the discount will remain until January 31, 2024, to help families stretch their budgets during the busy holiday season. An IKEA spokesperson told Retail Dive the change is “to create more value for all our customers and IKEA Family members” as the company reevaluates its pricing approach. 

New lower prices promised

This comes alongside a previous price reduction announcement. On the IKEA Family page, the retailer states customers will see “New Lower Price offers on hundreds of products across our range” starting November 2023. 

The new pricing structure emphasizes “everyday affordability,” with lower prices implemented across popular furniture and home goods categories. This is meant to counter rising inflation that squeezes household budgets.

In addition to lower regular prices, IKEA is teasing “new ways to save throughout the year with offers and perks as an IKEA Family member.” This implies loyalty members can expect exclusive discounts, deals, or other incentives on top of already-reduced prices.

Other IKEA Family Benefits Remain Unchanged

IKEA Family card
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Other perks loyalty members can still count on are free tea and coffee, 90-day price protection, and special event previews. 

However, the announced changes to the loyalty program have been poorly received by some IKEA customers. 

Shoppers’ Disappointment

Photo Credit: Kirsten Hopstaken

One Reddit user wrote: “Incredibly disappointing. Items that were $50 two years ago are $130 now. That DETOLF specifically was $99 just a couple of months ago! I’ve used IKEA for everything from work supplies to home decor because it was affordable. Now, why would I buy from IKEA when it’s more expensive than other big box options, AND I have to put it together?” The DETOLF is a favorite item for indoor greenhouses and hamster cages.

Another reminds IKEA on X that loyalty goes both ways. “Go ahead and remove the 5% discount for family members. We’ll just remember how much little your customers mean to you.”

A Universal IKEA Discount?

While many customers have expressed disappointment, not all reactions have been adverse. Some loyal IKEA Family members have taken a more sympathetic view of the changes.

In online discussions, these customers note that the new lower prices IKEA promised will essentially replicate the 5% everyday discount but make it available to all shoppers rather than just loyalty members. From this perspective, the discount isn’t indeed being removed but rather made universal.

Inter IKEA Group CEO Jon Abrahamsson Ring clarifies that 2023, after overcoming supply chain shortages in the previous years, was about improving material development and optimizing production – all aimed at offering customers lower prices.

“In challenging times when inflation is high, and many people struggle with the cost of living, the need for home furnishing solutions at affordable prices is high. This is where we will continue to do what IKEA has always done – putting customers’ affordability first. Looking further ahead, the three main opportunities we see for IKEA are to become even more affordable, more accessible, and more sustainable,” says Ring, reiterating IKEA’s commitment to accessibility and affordability for customers.

IKEA’s founding value of affordable home furnishings for all will continue to be tested as costs rise. Time will tell if the changes maintain customer loyalty.

IKEA Slashed Their Prices: Here Are 33 Items We’re Adding to Cart

new lower price ikea
Photo Credit: Depositphotos.

The furniture retailer has again risen to its budget-friendly reputation, slashing prices across various products, including a 20 percent cut on the popular BILLY bookshelf.

Jules Yap