IKEA, the world’s largest furniture retailer, has raised prices due to supply chain issues, Reuters reported.
IKEA said on Thursday that prices would rise by up to 9% on average in its markets to reflect its own rising costs, which it says are linked to rising commodity prices and the crisis in the supply chain. supply fueled by the pandemic that has plagued dozens of businesses.
“Unfortunately, for the first time since higher costs started to affect the global economy, we need to pass some of these increased costs on to our customers,” said Tolga Öncü, head of retail operations at IKEA.
The furniture retailer recently announced that it will start leasing ships, buying more containers and re-routing goods between warehouses to alleviate supply chain disruptions, adding that it will now have to pass costs on to its customers, according to Reuters.
In a statement, the company said it would continue to face “significant transportation and raw material constraints” that will drive up costs, adding that the disruptions could continue “until 2022,” reported Reuters.
IKEA and a number of retailers have seen demand for their products increase as consumers stay closer to home and invest more in goods than in travel and other services.