In 2022, Ikea to hike prices by 9 per cent due to supply chain woes

In 2022, Ikea customers will have to pay more when they shop at its stores as the company said that it will increase its prices by an average of nine per cent next due to the ongoing supply and transportation disruptions. 

The announcement on Thursday was made amid shortages and shipping challenges due to the COVID-19 pandemic which has caused inflation globally. 
 
Tolga Öncü, retail operations manager at IKEA Retail, said in a statement, "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." 

"Our intention is to give back to the customer any decrease in purchase prices we get," Öncü said, adding that this move will ensure IKEA's "competitiveness and the resilience". He further added that "affordability will always be a cornerstone" for the company. 

"The average of the increase in Ingka Group is around 9% globally, with variations across Ingka Group countries and the range, reflecting localised inflationary pressures, including commodity and supply chain issues," Ingka group said. 

Last month, Inter Ikea group reported a 17 per cent drop in annual profits, attributing the dent to a steep increase in transport and raw material prices.