Billy-ger won’t: IKEA will increase prices significantly in 2022

Billy-ger won’t
IKEA will increase prices significantly in 2022

For IKEA, too, the corona crisis is leading to interrupted supply chains and increased material costs. According to its own statement, the company cushions this. However, prices would have to rise massively worldwide in 2022. But there should be differences between the countries.

The furniture retailer Ikea wants to raise prices sharply. A spokesman for Ikea Germany in Hofheim-Wallau announced that price increases of nine percent on a global average are planned. The step affects “all product ranges and all countries”. However, price increases would vary significantly from country to country, since the costs in the individual countries are also very different.

There was no information on the planned price increases in Germany or for individual products. As a reason, Ikea cited the consequences of the corona crisis, which were becoming more and more noticeable worldwide. Since the beginning of the pandemic, Ikea has succeeded in “absorbing the massive cost increases along the value chain without increasing the prices of our products”. But the company is not immune to the upward trend. “That is why we are also raising the prices of our products for the first time since the global price increases began.”

Germany boss Denis Balslev had already announced price increases at the beginning of December with reference to globally disrupted supply chains, higher transport costs and high raw material prices, for example for wood, metal and foam. Ikea Germany recently felt the consequences of the pandemic with temporarily closed furniture stores and online competition.

In the past financial year 2021 (until August 30), the company lost sales in its most important single market worldwide and had to surrender market share for the first time in a long time. At 5.3 billion euros, sales fell 3.2 percent short of the record year 2020.

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