Ikea to raise prices by 9% to deal with supply issues


INFLATION – Swedish furniture giant Ikea will increase its prices on average by 9% in 2022 in the face of persistent shortages and expensive transport problems in the global economy, Ingka Group, which owns 90% of the stores, announced on Thursday. .

The economic difficulties linked to the Covid-19 crisis are catching up to Ikea. Faced with persistent problems of shortages and high transport costs, the Swedish giant will increase its prices by around 9% in the coming months. “Unfortunately, for the first time since higher costs started to affect the global economy, we are going to have to pass some cost increases on to our customers.”, indicated Ingka Group, an Ikea holding company which includes more than 90% of its stores.

“Like many other sectors, Ikea continues to face significant constraints on transportation and raw materials that drive costs, with no break expected in the near future.”, underlines the firm based in the Netherlands which specifies that “disruptions are expected for most of the year 2022”.

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Towards even stronger increases in Europe?

These price increases are not going to be negligible, far from it. “The average increase at Ingka Group will be 9% worldwide, with variations depending on the group’s countries and the range, reflecting local inflationary pressures”, says the company. The main cost increases linked to transport and supply prices “felt especially in North America and Europe”, prices could be even more affected.

Until now, Ikea had absorbed, without real turbulence, the significant costs generated by these major logistical tensions – in particular caused by the rebound in demand at the end of the first phase of the pandemic.

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However, in recent months the economy has deteriorated further, so much so that this announcement comes against a backdrop of sharp acceleration in inflation across the world, boosted by the deep disorganization of distribution chains and shortages of essential products for the economy. international trade. The phenomenon was accompanied by a surge in the prices of raw materials (wood, copper, steel) and energy (gasoline, gas, electricity). For example, inflation in the euro zone thus reached 4.9% over one year in November, a record since the introduction of the single currency in 1999. Likewise, the rise in prices has risen sharply. at 6.8% last month in the United States compared to November 2020, its highest level in 39 years.

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