International retail store Ikea is set to raise prices as the mass disruptions caused by global supply chain issues worsens
Ikea will raise the prices of its products as global supply chains continue to deal with major disruptions, which is expected to last into next year.
On Wednesday, Ikea reported a drop in full-year profit due to higher transport and the costs of raw material.
In 2022, Ikea will begin to pass some of these costs on to its outlets, which will be free to then charge customers more, according to reports by Reuters.
Businesses around the world continue to struggle with supply chain problems as economies recover from the pandemic.
The Swedish furniture giant saw record demand during the pandemic as people spent more time at home.
However, pre-tax profit at Ikea Group – which makes most of its money selling goods to its franchisees – fell 16% in the year to September to €1.7 billion.
