Looking ahead, IKEA plans to shift its commercial focus from “complete sleep” — beds and mattresses — to “complete cooking and eating,” covering kitchens, dining and food. Photo by JONATHAN NACKSTRAND/AFP/Getty Images/Postmedia files

Inter IKEA Group posted a 26 per cent drop in profit in its latest financial year as the rising costs of materials that go into its products, tariffs and one of the biggest price-cut programs in the company’s history eroded margins even as sales volumes grew.

The global franchiser of the Swedish furniture brand IKEA said operating profit declined about to €1.7 billion (US$1.96 billion) in the year ended Aug. 31. The company said the drop stemmed from its deliberate strategy to slash prices at the world’s biggest furniture retailer to protect sales a

See Full Page