Furniture giant IKEA raises prices as supply chain woes persist
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Customer pushes his purchased products outside of the Ikea store in Brooklyn, New York.
Victor J. Bloomberg | Bloomberg | Getty Images
IKEA, world’s most popular furniture manufacturer, has raised its prices an average of 9.9% to meet rising transport costs.
IKEA stated previously that it would lease more ships, buy containers, and re-route goods between warehouses in order to minimize supply chain disruptions. But, IKEA said now it had to pass those costs onto its customers because it expects that the turbulent times will continue.
Ingka Group stated that prices will rise by around 9% in average across all its markets. Local variations reflect different inflationary pressures including supply chain and commodity issues.
“Unfortunately now, for the first time since higher costs have begun to affect the global economy, we have to pass parts of those increased costs onto our customers,” Retail Operations Manager Tolga Öncü said.
“IKEA continues face significant transport constraints and raw material constraints driving down costs with no expected break in the near future,” said the company in a statement. It also stated it expects disruptions to persist “far into 2022”.
Ingka Group saw strong demand as more people stayed home during the pandemic.
The company operates as a franchise, with Ingka being the principal franchisee for brand owner Inter IKEA. There are 392 locations, including some in cities, and 73 small stores.
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