IKEA May ‘Severe’ Increase Prices Next Year

IKEA announced that they could increase their product prices in 2022 due to the disruptions in the supply chain in 2021 after the pandemic period. IKEA, which is under a great burden with the combination of raw material, transportation and labor costs, may choose to pass this burden on to its customers.

The Finance Department Manager of IKEA, the world’s most famous disassembled furniture manufacturer, Martin van Dam, announced that there may be an increase in the prices of products in 2022, and to the citizen who has difficulty even going home in the current economic situation. one more blow downloaded it. Due to the price increase in raw materials and transportation areas, IKEA will also meet next year. reflecting this difference to its products plans. IKEA about it not alone. Many large companies are also trying to increase the price of their products due to increases in transportation, packaging and labor costs.

This global problem in the supply chain also causes companies to be unable to meet the increasing demands. After his presentation on IKEA’s annual results, Martin van Dam said: We had a hard time filling. Disruptions in the supply chain also led to a serious decrease in the number of products we received. We are feeling the effects of this decline even now.” commented.

The crisis in the supply chain may be reflected in prices in 2022:

While almost every sector is trying to recover after 2020, which is like the doomsday, IKEA CEO Abrahamsson Ring said that this global crisis in the supply chain It will continue for most of 2022. Following the evaluation of the financial report for 2021, IKEA made the following statement: “There has been a very serious increase in raw material prices in the second half of 2021, with the shortage of products combined with high demand.”

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For this reason, IKEA plans to increase the prices of products in 2022 due to the decrease in the containers required for transportation in addition to the increase in raw material prices. What percentage of an increase will there be for now, or How to create a picture for Turkey not certain yet. But next year shopping at IKEA and then trying to assemble the furniture at home it will hurt a little more looks like.

Source :
https://www.businessinsider.com/ikea-warns-of-price-hikes-as-supply-chain-crisis-lifts-costs-2021-11


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