Dealing with an unprecedented demand for products and ongoing supply chain issues, officials on Thursday announced plans to raise the prices of products sold at IKEA in the new year.
Ingka Group, which owns and operates most IKEA stores worldwide, said in a statement that prices will rise by about 9% globally. Officials said the exact amount will vary by country based on “(localized) inflationary pressures, including commodity and supply chain issues.”
Officials noted that IKEA has seen its costs rise due to “significant transport and raw material constraints,” which are expected to continue well into 2022. North America and Europe have seen the biggest cost increases, according to Ingka Group.
Tolga Oncu, retail and operations manager at IKEA Retail, said Thursday that Ingka Group kept prices stable amid the pandemic to benefit customers.
“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 on to our customers,” he said. “We invest a large part of our net income back into the business to keep prices as low as possible, particularly for the lowest priced range, ensuring that as many people as possible continue to afford IKEA.”
Oncu said officials decided to take “this difficult step” to keep the company resilient and competitive while also ensuring that IKEA “can live up to our purpose to create a better everyday life for … many people.” He added that the company intends to pass on any decreases in its operating costs to consumers as economic conditions continue to fluctuate.
In the new year, Ingka Group expects to invest in measures to improve IKEA’s customer experience, open more stores and create faster, more affordable and more sustainable delivery options.
Since the start of the pandemic, officials said IKEA has seen increased demand for products that optimize space and create a balance between productivity and relaxation, such as workplace and outdoor furniture and storage solutions.
Ingka Group operates nearly 400 IKEA stores in 32 markets, welcoming 657 million customers each year. As of 2018, the last date for which information was available, there were more than 420 IKEA stores operating globally in 50 markets.
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