IKEA will increase its prices by an average of 9 percent next year due to ongoing supply chain disruptions, the Swedish furniture giant’s holding company announced on Thursday.
“Like many other industries, IKEA continues to face significant transport and raw material constraints driving up costs, with no anticipated break in the foreseeable future,” Ingka Group, the company that owns 90 percent of IKEA’s stores, said in a statement.
Higher costs caused by supply issues will now have to be passed on to customers, the statement added.
“The average of the increase in Ingka Group is around 9 percent globally,” the group said, adding the the price hikes will vary across countries to reflect different economic conditions.
Ingka Group noted that IKEA franchisor, Inter IKEA Group, had absorbed costs amounting to €250 million ($283 million) throughout 2021 from logistical issues to cushion the impact in retail prices.
The franchisor had reported a 17 percent drop in yearly profits last month that was primarily caused by high costs of transportation and raw materials.
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