IKEA to raise prices this year
Prices will increase by an average of 9% across all markets
Furniture giant IKEA is raising its prices by an average of 9% in 2022 due to the ongoing global supply chain disruptions.
Ingka Group, which owns and operates 392 IKEA stores worldwide, said the move to raise prices reflects the "changing economic conditions affecting all industries."
Prices are slated to increase across all markets but will vary in order to reflect local inflationary pressures, including commodity and supply chain issues, according to the Ingka Group.
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During fiscal year 2021, the company kept prices stable despite rising costs during the pandemic, Tolga Öncü, retail operations manager at IKEA Retail, said in a statement.
On top of that, IKEA franchisor, Inter IKEA Group, absorbed 250 million euros ($282,4 million) in supply chain-related costs "to soften impact on retail prices."
However, Ingka Group said the retailer is still facing "significant transport and raw material constraints driving up costs, with no anticipated break in the foreseeable future."
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Ingka Group estimated that disruptions will continue "far into 2022" and that North America and Europe are facing the biggest cost increases.
"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," Öncü said.
Meanwhile, the company is still working to mitigate the impact of the supply chain disruptions in its operation as much as possible by using extra ships and loaders to make sure stores are stocked.
"Our intention is to give back to the customer any decrease in purchase prices we get," Öncü added.