IKEA offers GST cut immediately

Now THIS is what you call smart marketing. First ones out of the gate on it, and they get the publicity. Now the other stores are forced to make a choice... wait until January and risk angering customers, or follow suit.

IKEA Canada honours recent GST cut on all home furnishings products today
Home furnishings retailer also lowers prices on over 1,000 products

BURLINGTON, ON, Nov. 1 /CNW/ - IKEA Canada announced today that it will begin honouring the recent federal government's GST tax cut on all 9,500 home furnishings products - effective immediately. In addition to the GST cut, IKEA Canada has taken the decision to also lower the prices on over 1,000 products.

"Low prices are the cornerstone of the IKEA philosophy. By honouring the GST cut now, we are putting more money back in our customers' wallets, especially on higher ticket items such as kitchens and mattresses," says Kerri Molinaro, President of IKEA Canada.

The price paid by consumers shopping at IKEA Canada will be discounted the equivalent to a 1 per cent reduction in the rate of GST, on all products to which GST applies, until January 1, 2008, when the federal government's announced reduction is effective.

Low prices are part of the IKEA concept and IKEA prides itself on providing the lowest possible prices to our customers at all times. Over the last two years as the Canadian dollar has gained strength, IKEA Canada has continued to lower prices on hundreds of products. The latest price reductions are part of our strategy to continually lower our prices. Earlier this year, $22 million was invested in lowering prices on 170 of IKEA Canada's best selling products. In 2006, IKEA Canada lowered prices by $50 million in order to offer our customers the best possible prices on furniture and home furnishings.

Molinaro adds, "The recent price reductions are not due to pressure from the federal government or because of the strong Canadian dollar. We believe by taking price cuts now on over 1,000 of our products, our prices will be more reflective of our customers' expectations and they will see IKEA Canada offers good value for money."


About IKEA
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IKEA is a leading home furnishings retailer with 260 stores in 36 countries worldwide, which are visited by 522 million people every year. IKEA Canada has 11 stores which are visited by over 25 million people every year. Last year the IKEA.com websites attracted 450 million visitors. Founded in 1943, IKEA's business philosophy is to offer a wide range of products of good design and function at prices so low, the majority of people can afford them.

For more information on IKEA, please visit: www.IKEA.ca.