IKEA owner Ingka Group has confirmed that the furniture retailer is raising prices across its markets due to the impact of inflationary pressures and commodity and supply chain issues.
The group said it had tried to keep prices as low as possible during the Covid-19 pandemic despite rising costs as it faced unprecedented demand for products that helped people to work from home.
As a result, Ingka Group made significant investments in physical and online retail operations in its 2021 financial year as it looked to meet customers’ changing needs. This amounted to a spend of €3.2 billion on physical stores, distribution and customer fulfilment networks, omnichannel transformation, digital customer experience, renewable energy, zero emission vehicles and forestry.
Ingka said IKEA continues to face significant transport and raw material constraints which are driving up costs. The biggest cost increases are being seen in North America and Europe.
