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IKEA claims that its higher prices are caused by supply chain issues


Image of the article titled Supply Chain Woes Have Come for IKEA Price & # 39;  s Price

Photo: Stephen Chernin (Getty Images)

Bad news for furniture shoppers: On Thursday, IKEA confirmed that the company will raise prices on a large portion of its historically budget-friendly catalog.. Blame the culprit IKEA High prices – you guessed it – is the frightening supply chain.

“[U]Unfortunately, there has been a significant increase in costs across the supply chain, including raw materials, transportation and logistics,” a member of the company’s support team said. tweet it earlier this week. “As this continues, it is necessary to increase prices across many of our products.”

Supply chain problems are not unique to furniture retailers; tech giantsAnd fashion brandsAnd even ketchup suppliers They have all felt the economic stress caused by the COVID-19 virus. To explain the problem in short: The ongoing shutdowns around the world have increased the demand for deliveries. This surge in demand has led to cargo ships Port blockage With their undelivered goods, with shipping rates I jumped across the board.

And while it’s there many pieces By being involved in the supply chain that a company like IKEA uses to deliver a sofa to your door, they’re all feeling some kind of hurt right now — and it was only a matter of time before customers started feeling it too.

“Price increases vary but remain consistent with what we see globally at Ikea, which is roughly 9% on average across countries and product group,” an IKEA spokesperson He told the Guardian newspaper in the current situation. “Affordability remains at the heart of our business, and our focus will always be on continuing to provide high-quality, sustainable home furnishing at an affordable price to so many people.”

However, at a time when a large number of IKEA customers feel it Their own economic crisis From the pandemic, it hurts to see a budget-conscious brand succumb to these issues. As The Guardian’s own report notes, it appears that IKEA’s price hikes far exceed the 9% increase mentioned by the spokesperson; Looking at the archived versions of the company’s website, the prices of some products have increased significantly to 50% in the last few months alone. A desk that used to be £99 (about $134) has jumped to £150 (about $203), and a daybed that used to be £215 (about $290) is now £279 (approximately $377). ). For some shoppers, these were previously affordable The options are now directly out of their budgets.

The new prices may come as a shock to some, but IKEA has already warned us all that a price hike is imminent. In an annual financial summary released last November, the company stated that maintaining warehouses and warehouses was “challenging” and costly at the time.

The global pandemic affected our operating income in FY21. The biggest reason was the sharp increase in transportation and raw materials prices in the second half of the fiscal year,” IKEA wrote at the time. “Supply chain disruptions significantly reduced the availability of products that we did not recover of them after. We expect this to continue well into fiscal year 22.”

In other words: expect prices to continue to rise at IKEA well into the new year. If you’re looking for a cheap coffee table in the meantime, it might be a good idea to look at your local second-hand store instead.





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