Bad news if you are looking to buy new furniture this coming year.
Been to IKEA lately and found you suddenly seemed to be paying more for stuff? You are not imagining things.
The Swedish furniture giant has announced that they have had to increase the average price of products in its Irish stores by over 11 percent.
“Transportation, logistical costs, and local market conditions” are behind its global price rises, a spokesperson said of the price hike.
A spokesperson for the flatpack furniture giant said that since the start of the pandemic, the company has managed to absorb the “significant cost increases” experienced across the supply chain while keeping prices as low and stable as it possibly can.
However, this was not sustainable anymore.
“Now, like many other retailers, we have had to raise our prices to mitigate the impact on our business,” the IKEA spokesperson said.
“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.”
The spokesperson continued:
“Whilst individual price increases vary, the average increase is 11.2 percent in Ireland, in line with the global average of 9 percent.”
Global transport and raw material constraints
In a statement, IKEA said it continues to face significant global transport and raw material constraints driving up costs, with no anticipated break in the foreseeable future.
Disruptions are expected far into 2022, it said, adding that the biggest cost increases due to transport and purchase prices are being felt most in North America and Europe.
“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,” the company said.
“We are taking this difficult step right now to ensure we can live up to our purpose to create a better everyday life for the many people, and to safeguard our competitiveness and the resilience of our company. Affordability will always be a cornerstone for us.”