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Ikea Raising Prices By an Average of 9% in 2022

'IKEA continues to face significant transport and raw material constraints driving up costs,' said the owner of most of its stores.
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Ingka Group, the owner of 79% of Ikea stores, said Friday that it’s boosting prices by an average of 9% at the world’s biggest furniture retailer. Ingka owns 367 of Ikea’s 463 stores.

“Like many other retailers, Ingka Group has faced an unprecedented demand for products,” it said in a statement.

“And while IKEA has shipped more than ever before, it was still not possible to meet the needs of all customers.

“To support customers to adapt in these unprecedented times, Ingka Group made significant investments in physical and online retail operations focused on meeting customers’ changing needs, to meet them how, when and where they wanted.”

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Ingka said it made 3.2 billion euros ($3.6 billion) of capital expenditures in fiscal 2021.

“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. Disruptions are expected far into 2022. The biggest cost increases due to transport and purchase prices are being felt most in North America and Europe.”

So, “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 Ikea Retail Operations Manager Tolga Öncü.

“Prices will go up across Ingka Group markets,” the company said. “The average of the increase in Ingka Group is around 9% globally, with variations across Ingka Group countries and the range, reflecting localized inflationary pressures, including commodity and supply chain issues.”