IKEA increases prices, blames problems in the supply chain

IKEA, the world’s largest furniture retailer, has increased prices due to supply chain problems, It reports Reuters.

IKEA said on Thursday that prices will rise by up to 9 percent on average across markets to reflect its own rising costs, as indicated by higher commodity prices and the pandemic supply chain crisis that has confused many companies.

“Unfortunately, now, for the first time since higher costs have begun to affect the global economy, we have to pass on some of these increased costs to our customers,” said IKEA retailer Tolga Öncü.

The furniture retailer recently said it would start leasing ships, buying more containers and redirecting goods between department stores to reduce supply chain disruptions, adding that they now have to pass on costs to customers, according to Reuters.

In a statement, the company said it would continue to face “significant transport and commodity constraints”[ads1]; that would increase costs, adding that the disruption could continue “well into 2022”, Reuters reported.

IKEA and a number of retailers have seen an increasing demand for their products as consumers stay closer to home and spend more of their money on goods than travel and other services.

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