Ikea to raise its prices globally by an average of 9%

Prices for Ikea products are set to rise by an average of 9% worldwide in 2022. The planned price markups are the reaction of Ingka Group - Ikea’s largest franchisee - to continued cost increases in the areas of logistics and upstream products. According to the group, these cost increases have been most significant in North America and Europe. As there appears to be no short-term relief in sight, some of the costs are now to be passed on to customers. In the event that purchasing prices decline again, Ingka Group intends to correspondingly adjust its own prices downwards.

Despite the increases now announced, the group intends to expand the proportion of low-price products in future. The goal is to offer more than half of the product range at a low price. According to Ingka Group, it has kept prices for Ikea products stable since the outbreak of the corona pandemic. At the same time, Ikea franchisor Inter Ikea Group has incurred additional costs of €250m in connection with supply chain disruptions. In view of scarce sea freight capacities and congested ports, to ensure availability of goods, the group chartered ships, purchased containers and rented external warehouses last year.

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