NATIONAL NEWS

Ikea is raising prices by 9% in 2022

Jan 3, 2022, 6:18 AM | Updated: Jun 8, 2022, 3:22 pm
FILE: Shoppers push carts down one of the self-serve pick-up aisles at an Ikea store in Paramus, Ne...
FILE: Shoppers push carts down one of the self-serve pick-up aisles at an Ikea store in Paramus, New Jersey. (Photo by Stephen Chernin/Getty Images)
(Photo by Stephen Chernin/Getty Images)

(CNN) — Ikea said its customers will pay more when they shop at its stores in 2022.

Like many companies with tight profit margins, the world’s biggest furniture seller is struggling to absorb higher costs because of ongoing global supply chain problems.

Ikea said prices at its stores will increase by an average of 9% around the world to help offset significant transportation and raw material costs incurred by Ingka Group, which owns and operates most of Ikea stores worldwide.

From its do-it-yourself philosophy embodied in its virtually staff-free showrooms to its flat-packed furniture, Ikea has become synonymous with low prices and value. Despite surging costs during the pandemic, Ikea stores had largely kept prices stable.

But, as commodity and shipping prices continued to surge, the company said it was no longer able to absorb that damage to its bottom line.

“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 Öncü, retail operations manager at IKEA Retail, said in a statement.

Öncü said this move will ensure IKEA’s “competitiveness and the resilience,” but adds that “affordability will always be a cornerstone for us.”

The retailer said it has seen unprecedented demand for home-related products, such as furniture, storage products and home office-related items during the pandemic, so much so that it has not always been able to meet all the needs of its customers.

The company said it’s trying to mitigate the ongoing impact from supply chain issues such as shipping delays by using charting extra ships and loaders.

“Our intention is to give back to the customer any decrease in purchase prices we get,” said Öncü.


The-CNN-Wire
™ & © 2022 Cable News Network, Inc., a WarnerMedia Company. All rights reserved.

KSL 5 TV Live

Top Stories

National News

Demonstrators participate in a protest against the police killing of Tyre Nichols on January 27, 20...
Adrian Sainz, Associated Press

Memphis authorities release video in Tyre Nichols’ death

Video showing five Memphis officers beating Tyre Nichols, a Black man, has been made public.
2 days ago
An apparent shortage of pharmacists is forcing CVS and Walmart to reduce the hours of its pharmacie...
Jordan Valinsky

CVS and Walmart cut pharmacy hours, close some locations earlier, citing staffing shortage

An apparent shortage of pharmacists is forcing CVS and Walmart to reduce the hours of its pharmacies, as they close earlier in thousands of locations.
2 days ago
Video of the attack on Paul Pelosi at his San Francisco home was released after a California court ...
Jeremy Herb, Jack Hannah and Jack Forrest

Court releases video of attack on Paul Pelosi

The San Francisco Superior Court on Friday released video and audio recorded during last year's attack on Nancy Pelosi's husband, Paul Pelosi, including police body-cam footage depicting the moment of the attack and the alleged assailant's police interview where he admitted he wanted to hold the then-House speaker hostage.
2 days ago
This image taken from video provided by the NAOJ & Asahi Shimbun, shows spiral swirling through...
Audrey McAvoy, Associated Press

Camera captures night sky spiral after SpaceX rocket launch

A camera atop Hawaii's tallest mountain has captured what looks like a spiral swirling through the night sky. Researchers believe it shows the aftereffects of a SpaceX rocket launch when the company's Falcon 9 rocket sent a GPS satellite into orbit.
2 days ago
People attend a candlelight vigil in memory of Tyre Nichols at the Tobey Skate Park on January 26, ...
Simone Seikaly, KSL NewsRadio

Utah safety officials, NAACP, react to death of Tyre Nichols

The Utah Department of Public Safety together with the Salt Lake Branch of the NAACP have called the death of Tyre Nichols a "despicable act of violence and inhumanity."
2 days ago
Holding on to their secret and each other, mother and son set out to reclaim their sense of home, i...
LINDSEY BAHR AP Film Writer

‘A Thousand and One’ wins Sundance grand jury prize

"A Thousand and One," a drama about an impoverished single mother and her son in New York City, won the Sundance Film Festival's grand jury prize in the U.S. dramatic competition, while "Going to Mars: The Nikki Giovanni Project" was awarded the top prize in the U.S. documentary category.
2 days ago

Sponsored Articles

Fiber Optical cables connected to an optic ports and Network cables connected to ethernet ports...
Brian Huston, CE and Anthony Perkins, BICSI

Why Every Business Needs a Structured Cabling System

A structured cabling system benefits businesses by giving you faster processing speeds and making your network more efficient and reliable.
notebook with password notes highlighted...
PC Laptops

How to Create Strong Passwords You Can Actually Remember

Learn how you can create strong passwords that are actually easy to remember! In a short time you can create new ones in seconds.
house with for rent sign posted...
Chase Harrington, president and COO of Entrata

Top 5 Reasons You May Want to Consider Apartment Life Over Owning a Home

There are many benefits of renting that can be overshadowed by the allure of buying a home. Here are five reasons why renting might be right for you.
Festive kitchen in Christmas decorations. Christmas dining room....
Lighting Design

6 Holiday Decor Trends to Try in 2022

We've rounded out the top 6 holiday decor trends for 2022 so you can be ahead of the game before you start shopping. 
Happy diverse college or university students are having fun on their graduation day...
BYU MBA at the Marriott School of Business

How to Choose What MBA Program is Right for You: Take this Quiz Before You Apply!

Wondering what MBA program is right for you? Take this quiz before you apply to see if it will help you meet your goals.
Diverse Group of Energetic Professionals Team Meeting in Modern Office: Brainstorming IT Programmer...
Les Olson

Don’t Let a Ransomware Attack Get You Down | Protect Your Workplace Today with Cyber Insurance

Business owners and operators should be on guard to protect their workplace. Cyber insurance can protect you from online attacks.
Ikea is raising prices by 9% in 2022