IKEA's annual sales fell for a second consecutive year, it reported on Thursday, as the budget furniture retailer stuck to a strategy of cutting prices to attract cash-strapped consumers and gain market share in a fiercely competitive market.

Having hiked prices during the pandemic due to supply chain disruptions, the world's biggest furniture retailer has cut prices by 10% on average over the past two years as high inflation and weak housing markets worldwide dented consumers' demand for furniture and homeware.

Global IKEA retail sales in the 2025 financial year- which ended on August 31- fell 1%, or 0.3% adjusted for currency effects, to 44.6 billion euros ($51.9 billion). The total number of products sold, however, was up 3%, with customer numbers and store visits also up.

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