Ikea hikes Irish prices by 11pc

Ikea has increased its average prices in Ireland by 11.2pc on the back of mounting supply chain costs.

he rise in prices here is larger than the global average price increase of 9pc across Ikea’s network of shops.

A spokesperson for the Dutch-headquartered company said that since the start of the pandemic, it has managed to absorb “the significant cost increases” it has experienced across the supply chain, while keeping prices “as low and stable as we possibly can.”

“Now, like many other retailers, we have had to raise our prices to mitigate the impact on our business.”

The prices of the company’s products are impacted not only by the cost of raw materials, “but also by transportation, logistical costs and local market conditions,” the spokesperson said, adding that price changes “differ from country to country.”

“Whilst individual price increases vary, the average increase is 11.2pc in Ireland, in line with the global average of 9pc,” it added.

On its website, the flat-pack giant said that it continues to face “significant” transport and raw material constraints, which are driving up costs, “with no anticipated break in the foreseeable future.”

The company warned that disruptions are expected “far into 2022.”

“The biggest cost increases due to transport and purchase prices are being felt most in North America and Europe,” it added.

The group said that affordability “remains at the heart of our business, and our focus will always be on continuing to offer quality, sustainable home furnishings at an affordable price for the many people.”

In its financial year 2021, the group invested a total of €3.2bn across the company. This included investment in physical stores, distribution and customer fulfilment networks, omnichannel transformation, digital customer experience, renewable energy, and zero-emission vehicles.

Founded in 1943 in Sweden, Ikea today has over 370 shops across 30 countries.

The company’s flagship shop in Dublin is located in Ballymun, while it also operates an order and collection point service in Carrickmines.

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