Furniture Company IKEA Raises Prices, Cites Supply Chain Issues

The furniture conglomerate IKEA is raising prices by an average of 9% amid increasing transportation and production costs, Reuters reported on Thursday.

"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," said Tolga Öncü, retail operations manager.

The Swedish brand previously said it was leasing more ships, buying containers, and rerouting goods between warehouses to mitigate supply chain disruptions. It said, however, that circumstances had forced the company to pass the costs on to consumers.

Ingka Group, a holding company that controls most IKEA stores, added that regional variations in inflation would reflect different commodities and the supply chain issues in the area.

"IKEA continues to face significant transport and raw material constraints driving up costs, with no anticipated break in the foreseeable future," the group said in a statement, adding it expected disruptions to continue "far into 2022."

 

 Retailers have seen soaring demand for their products as consumers stick closer to home and put more of their money into goods than travel and other services, according to The Hill.  

https://www.newsmax.com/newsfront/inflation-retail-economy-finance/2021/12/31/id/1050640/