Shrinkflation hits IKEA Family by removing 5% discount
Shrinkflation hits IKEA Family by removing 5% discount
IKEA Family is a membership program, like grocery store memberships. The only real feature of the program was their 5% discount. But now, they are getting rid of it to focus on "New Lower Price offers". I'm not holding my breath that their prices are going to come down anytime soon.
IKEA Family is worthless now. They do offer "select delivery options" with no explanation on what this means.
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IKEA profits are wayyyyy up this past year. So not sure why they’re killing off a successful marketing program.
Growth is not up to expectations
Well, getting rid of your return customer incentive program isn’t going to help growth.
Maybe not in the long run, but please someone think of the next fiscal quarter!!
Board and ceo says they need even higher margins, the billions in profit simply aren't enough!
They realised that people were still coming as often with the specific items rebate program they have everywhere else and figured they should stop leaving money on the table in the USA.
That's my guess.
They say cost is going down, in my local ikea website we didn't have the royalty program like OP posted, but they did have price cut and all, not sure how long this will last.