IKEA is planning price rises of 9% next year
Prices at IKEA International A/S are set to rise significantly, as its largest store operator is saying that rising supply costs will have to be partly passed on to consumers.
Ingka Group , the biggest owner and operator of IKEA stores, said Thursday that prices across the group will rise by around 9% on average, with variations depending on country and range, amid a global squeeze on supply chains and higher associated costs. “IKEA continues to face significant transport and raw-material constraints driving up costs, with no anticipated break in the foreseeable future,” Ingka said, adding that disruptions are expected well into 2022. The largest cost increases relate to transportation and purchasing prices, and are particularly affecting North America and Europe, the company said.
“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,” Tolga Oncu, retail operations manager at Ingka’s core IKEA Retail division, said. The company said that affordability remains a “cornerstone” of its approach, and that it keeps its gross margin as low as possible to this end. IKEA will continue to expand its lowest-priced ranges as a proportion of the total, with an ambition to have more than half of the product range be low-price, Ingka said.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
USD/CAD remains steady above 1.2800 amid falling oil pricesThe USD/CAD slumps during the New York session, trading at 1.2809 at press time. Investors’ mood is mixed, as US equity indices fluctuate between gain
Read more »
Economists warn of inflation inequality as poor get slammed by rising pricesThe pandemic has led to a new era of inflation inequality, economists warn, in which poor households bear the brunt of rising prices. ylanmui reports.
Read more »
Home sale prices reach record high: RedfinU.S. median home sale prices rose 14.6 percent year-over-year, reaching an all-time high of $361,171 in the four-week period ending Dec. 26, according to Redfin.
Read more »
Forecasting share prices now calls for a combined approach – NatixisThere are two theories to determine a stock market index target. The fundamental approach and the portfolio rebalancing approach. Strategists at Natix
Read more »
USD/CAD remains steady above 1.2800 amid falling oil pricesUSDCAD Price Forecast: It is tilted upwards as long as the DMAs reside below the spot price. It remains steady above 1.2800 amid falling oil prices. Markets Analysis
Read more »
Pending home sales fall 2.2% in November as rising prices make buyers hesitantThe National Association of Realtors' pending home sales index, which tracks the number of homes that are under contract to be sold, slipped 2.2% to 122.4 in November on a monthly basis.
Read more »