The Ingka Group, the largest franchisee of furniture retailer Ikea (Delft, Netherlands), will raise prices this year due to ongoing supply chain pressures.
Prices will go up across the group’s markets, “reflecting the changing economic conditions that are affecting all industries,” the company said in a release. The average price increase is about 9 percent globally.
The release says Ikea continues to face significant transport and raw material constraints driving up costs, with no anticipated break in the foreseeable future. Disruptions are expected far into 2022. The biggest cost increases due to transport and purchase prices are being felt most in North America and Europe.
“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,” said Tolga Öncü, Retail Operations Manager at Ikea Retail (Ingka Group).
Additionally, Ingka Group briefly outlined its plans for new stores in 2022, promising improved customer experiences and faster, more affordable delivery options.