Supply chain issues force IKEA to raise prices

IKEA has confirmed that it will be hiking its UK prices due to supply chain issues triggered by the coronavirus pandemic.

The ready-to-assemble furniture retailer first warned that prices would need to increase in November last year.

“During the pandemic, despite rising costs all around us, Ingka Group kept prices stable with the aim to keep prices as low as possible for customers,” said Tolga Öncü, IKEA’s retail operations manager, at the end of last year. “It was the right thing to do.”

A spokesperson from the company said that although IKEA has managed to absorb the significant cost increases experienced across the supply chain since the start of the pandemic, it has had to raise its prices to mitigate the impact of Covid-19 on the business.

“As prices are influenced not only by the raw material prices but also by transportation, logistical costs and local market conditions, price adjustments differ from country to country,” they added.

The company said that while individual price increases in the UK will vary, the average price will rise by 10 per cent, which it said was “in line with the global average of 9 per cent”.

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