Faced with the persistence of shortages and expensive transport problems in the global economy, Swedish furniture giant Ikea is forced to increase its prices by an average of 9% in 2022.
“For the first time since higher costs started to affect the global economy, we will have to pass some cost increases on to our customers,” said Ingka Group, an Ikea holding company which has 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. The disruptions are expected for most of 2022, ”said Ingka, who is based in the Netherlands.
According to Ingka, the main cost increases related to transport and supply prices which “are felt especially in North America and Europe”.
“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,” the group said.
Accelerating inflation
Until now, Ikea had absorbed the significant costs generated by these major logistical tensions, caused in particular by the rebound in demand at the end of the first phase of the pandemic.
This announcement comes against a backdrop of sharp acceleration in inflation across the world, driven by the deep disruption of distribution chains and shortages of products essential to international trade.
The phenomenon was accompanied by a surge in the prices of raw materials (wood, copper, steel) and energy (gasoline, gas, electricity).
