With its do-it-yourself philosophy embodied in its virtually unmanned showrooms to its flat-packed furniture, Ikea has become synonymous with low prices and value. Despite rising costs during the pandemic, Ikea stores have basically kept prices stable.
But, as commodity and shipping prices continued to rise, the company said it was no longer able to absorb that damage to its profits.
“Unfortunately, now, for the first time since rising costs have started to impact the global economy, we have to pass some of those costs on to our customers,” said Tolga Öncü, head of sales operations at detail of IKEA Retail.
Öncü said this move will ensure IKEA’s “competitiveness and resilience”, but adds that “accessibility will always be a cornerstone for us.”
The retailer said it saw unprecedented demand for home products, such as furniture, storage products and home office items during the pandemic, so much so that it wasn’t always able to meet all needs. of its customers.
The company said it is trying to mitigate the ongoing impact from supply chain problems such as shipping delays by using ship mapping and extra shippers.
“Our intention is to pay back to the customer any decrease in purchase prices we get,” Öncü said.
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