What is going on?
Furniture retailer Ikea is going to raise its prices significantly. Globally, price increases of an average of 9 percent are planned. A spokesman for Ikea Germany said this on Thursday.
Which products are becoming more expensive in which country?
It is not yet clear by what percentage the prices in each country will increase. “A percentage means little, because we have more than 10,000 products in our range in widely differing price ranges,” says a spokeswoman.
IKEA looks per product and product family at what the competition is doing and what the prices are at IKEA in other countries. “We protect the price of our popular iconic products against the competition.”
What is the cause of the price increase?
According to IKEA, it is necessary to pass on the higher prices it has to pay for raw materials and transport to the customer.
In September it was already announced that IKEA is suffering from the worldwide problems in the supply chain, which are caused, among other things, by the corona crisis. As a result, some products disappeared from the range at least for a period of time. At the time, the company expected that it would not be necessary to pass on the higher raw material prices to consumers.
How long will we be with the increased prices?
IKEA said in October that it is confident that the supply chain problems and the associated shortages in stocks will continue at least until the middle of next year.
The company’s biggest challenge is getting goods shipped from China. The company still did not want to pass on the extra costs for, among other things, transport to customers. IKEA is now forced to raise prices because it is “not immune to macroeconomic developments”, the spokeswoman said.
–
