IKEA Says Supply Chain Issues Forcing Them to Raise Prices
IKEA has boosted its prices due to the supply chain crisis.
The world’s largest furniture retailer announced on Thursday that they will be upping their prices by an average of nine percent across all markets.
“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,” IKEA’s Retail Operations Manager Tolga Öncü said in a statement.
Reuters reports, “IKEA had previously said it was leasing more ships, buying containers and re-routing goods between warehouses to mitigate supply chain disruptions but said it was now having to pass the costs onto customers, as it expected the turbulence to continue.”
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“IKEA continues to face significant transport and raw material constraints driving up costs, with no anticipated break in the foreseeable future,” IKEA’s statement said, adding that they expect the supply chain problems to last “far into 2022.”
The company reports high demand as people have been spending more time in their homes during the pandemic.