At Ikea, there is a risk of significant price increases in 2022

Created: 12/19/2021, 10:37 AM

From: Magdalena Fürthauer

The Swedish furniture store Ikea attracts its customers mainly with low prices.

But it is precisely these that are likely to increase significantly from 2022 - because of Corona.

Munich - Some people are only too happy to furnish their first own apartment with Ikea furniture.

In addition to the well-known design, the furniture manufacturer's low price is particularly attractive.

But something is likely to change in 2022: As in other sectors, there is a risk of a significant price increase due to Corona.

Ikea: Significant price increase from 2022 due to Corona

In order to continue to expand its market dominance, Ikea regularly introduces innovations.

For example, the payment process at the cash registers and the visit concept itself are being reconsidered at the moment.

But the Swedish company cannot defend itself against current delivery bottlenecks due to the pandemic.

According to dpa, Ikea Germany boss Dennis Balslev names higher transport costs, the globally disrupted supply chains and the high raw material prices for wood, metal and foam as current challenges.

So keep an eye on the competition, but price increases could still be inevitable from 2022 onwards.

However, Ikea wants to stick to the goal of affordability, according to Balslev.

Raw materials more expensive: Price increases at Ikea

Balslev did not announce the amount by which prices would rise.

The increase should not be too small.

According to

, the price of wood as a raw material rose by around 30 percent last year.

However, Ikea is apparently always liquid: Balslev emphasizes that no state aid was used for the 20,000 employees in Germany during the corona pandemic.

A weekend trip to Ikea is now almost a classic.

Now, however, the prices are likely to be significantly higher as usual.

© IMAGO / ZUMA Wire

But Corona is also affecting the furniture giant in other ways.

The pressure from online competitors is increasing, even sales fell for the first time since 2006, according to dpa.

While Ikea recorded sales of 5.33 billion euros across Germany in 2020, it fell by 3.2 percent in 2021.

According to Balslev, this is due to the month-long closings of the branches.

Ikea: Strong online competition in the furniture segment

It should therefore be all the more important to increase the online presence.

Balslev announces that it will continue to increase Ikea's market share in the online area.

After all, in 2021 they had already generated 34.4 percent of their income online, compared to only 16.2 percent in the previous year.

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