Ikea has said it expects to raise prices for consumers as ongoing supply chain disruption sparks higher transport and raw material costs.
The Swedish furniture giant suffered a drop in full-year profits as a result of the supply chain crisis. It warned that it would be forced to pass some of these costs onto its franchise outlets, which would then be free to charge customers more.
Pre-tax profit at Inter Ikea Group, the business that oversees the brand’s franchises and is in charge of supply, fell 16% to £1.7bn in the year to August. This represents a decline of 4% compared with pre-pandemic levels.
Please sign in now if you have a subscription or are already registered with us.
Retail-Week.com provides premium, in-depth intelligence that helps retailers judge risks, spot opportunities and identify what they need to do to win in the digital economy.
Register today for a taste of our high-quality intelligence and enjoy:
During December, registered users can access 24 free articles in our advent calendar - find it here or on the homepage.
Discover Retail Week register now
Please note, if you have recently purchased a subscription, it may take a few minutes before your account is updated.