Thursday, May 19, 2022

Ikea to raise prices 9% worldwide amid supply challenges

It nevertheless says it plans to maintain the affordability of the goods being sold, keeping prices as low as possible.

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Furniture giant Ikea has decided to increase prices by around 9% worldwide due to the difficulties associated with commodity and supply chains, Ingka Holding, the owner of the majority of Ikea stores, said on Thursday.

“Prices will go up across Ingka Group markets, reflecting the changing economic conditions affecting all industries. The average of the increase in Ingka Group is around 9% globally, with variations across Ingka Group countries and the range, reflecting localised inflationary pressures, including commodity and supply chain issues,” Sputnik quoted Ingka as saying in a statement.

According to the press release, Ikea has lately been facing transport and raw material disruptions resulting in cost increases, especially given the ongoing Covid-19 pandemic.

“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 at Ikea Retail Tolga Oncu said in the statement.

The company’s management said it believed the increase in prices would help safeguard the competitiveness of Ikea and its resilience. At the same time, it said, executives plan to maintain the affordability of the goods being sold, keeping prices as low as possible.

Ikea was founded in Sweden in 1943. The company sells its own ready-to-assemble furniture, kitchen utensils and various home accessories.

Ikea has been the world’s largest furniture retailer since 2008.

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