IKEA, the world’s biggest furniture retailer, is planning to raise prices on its products in 2022 as it struggles to manage ongoing supply chain issues.
Inka Group, which owns and operates most of IKEA stores, said its stores worldwide would hike prices by nearly 9% in an effort to offset increased costs associated with transportation and sourcing of raw materials.
While the company has primarily been able to absorb these increased costs and keep its price points stable throughout the pandemic, it noted that it could no longer do so without negatively impacting its bottom line.
“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,” Tolga Öncü, retail operations manager at IKEA Retail, said.
Öncü added that the move would help IKEA remain competitive and resilient while it continues to focus on making affordability a cornerstone of its business model.
The company said that it is working to mitigate supply chain issues and costs resulting from shipping delays by charting additional loaders and ships.
“Our intention is to give back to the customer any decrease in purchase prices we get,” Öncü said.
IKEA has seen a surge in demand for home-related items, such as storage products, furniture, to the point that it has not been able to meet the demand.