Ikea Prices Spike 50% After Christmas, COVID Supply-Chain Issues To Blame
Prices of Ikea products have surged as much as 50%, a sharp uptick due to supply-chain costs from the pandemic. The home furnishing giant said it has struggled to keep prices lower.
“Since the start of the pandemic, Ikea has managed to absorb the significant cost increases 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,” an Ikea spokesperson told the Guardian.
Desks, chairs, beds and drawer prices have seen an increase of 11% to 50% since October, according to Ikea’s website.
On Sunday, an Ikea customer on Twitter commented on how prices jumped after Christmas, noting that usually prices go down following the holiday.
The Ikea support account responded on Monday: “Unfortunately, there has been a significant increase in costs across the supply chain, including in raw materials, transport and logistics. As this is still ongoing, it is necessary to increase prices across many of our products.”
Ikea experienced stock shortages earlier this year due to global supply issues with shipping from Asia, and a backup at ports is causing delays.
A shortage of workers has caused Ikea to spend more on wages. Ikea has increased pay to $16 per hour for U.S. employees. The company said some hourly wages will start at $17 or $18 per hour, depending on location. The wage increases go into effect on Saturday.
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