STOCKHOLM – The biggest furniture brand in the world Ikea is raising prices by an average of 9% as it faces rising transport and raw material costs, the owner of most of its stores around the world said on Thursday.
Ikea had previously said it was leasing more vessels, buying containers and rerouting goods between warehouses to mitigate supply chain disruptions, but said it now had to pass the costs on to customers as it s expected the turmoil to continue.
Ingka Group said prices would rise by around 9% on average in its markets, with local variations reflecting different inflationary pressures, including raw materials and supply chain issues.
“Unfortunately now, for the first time since rising costs started affecting the global economy, we have to pass on some of these increased costs to our customers,” said Tolga Öncü, director of retail operations.
“Ikea continues to face significant transportation and raw material constraints driving up costs, with no anticipated disruption for the foreseeable future,” the group said in a statement, adding that it expected the disruptions continue “until 2022”.
Ingka Group has seen high demand during the pandemic as people have stayed home more.
It operates through a franchise system, with Ingka the main franchisee of the owner of the Inter brand Ikea with 392 stores including city stores and 73 smaller store formats.