The Limited Times

Now you can see non-English news...

Shopping more expensive at Ikea, prices rise by 9%

2022-01-01T17:53:51.978Z


Covid and inflation push Swedish giant distribution costs (ANSA) Covid is infecting not only the inhabitants of the planet but also their inexorably interconnected economy: the skyrocketing costs of raw materials and logistics have become an unsustainable burden also for Ikea, the Swedish DIY furniture giant, a symbol of shopping at the reach for all budgets. The price increase has become inevitable and this is how with the beginning of 2022 the Swedish furnitu


Covid is infecting not only the inhabitants of the planet but also their inexorably interconnected economy: the skyrocketing costs of raw materials and logistics have become an unsustainable burden also for Ikea, the Swedish DIY furniture giant, a symbol of shopping at the reach for all budgets.

The price increase has become inevitable and this is how with the beginning of 2022 the Swedish furniture giant announced an average price increase of 9% in all its stores.

A low blow to the pockets of thousands of people who for decades have tried to assemble pieces of furniture by themselves such as the legendary Billy bookcase. It is estimated that one is sold somewhere in the world every five seconds - a great achievement considering it launched in 1979. "Unfortunately, for the first time since rising costs began to affect the global economy, we will have to pass on some cost increases to our customers, "said Ingka Group, the holding company that controls 367 of Ikea's 422 stores, or more than 90% of its stores.

According to Ingka, the main increases in transport costs and supply prices "are mainly felt in North America and Europe". "The average price increase of Ingka Group will be 9% worldwide, with variations by country of the group and the range, reflecting local inflationary pressures", indicated the Nordic brand which last month recorded a 17% drop in annual profits to be attributed precisely to the sharp rise in the prices of transport and raw materials. Due to these logistical tensions, exacerbated by the recovery in demand after the first phase of the pandemic, in 2021 the Ikea group absorbed costs of 250 million euros (283 million dollars).

The announcement of the Swedish company known and loved all over the world comes in a context of strong acceleration of global inflation accompanied by a surge in the prices of raw materials (wood, copper, steel) and energy (petrol , gas, electricity).

In the euro zone, inflation reached 4.9% over one year in November, a record since the introduction of the single currency in 1999. In the United States, the increase in prices was 6.8% last month compared to November. 2020, its highest level in 39 years. 

Source: ansa

All life articles on 2022-01-01

You may like

Trends 24h

Life/Entertain 2024-03-28T17:17:20.523Z

Latest

© Communities 2019 - Privacy

The information on this site is from external sources that are not under our control.
The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.