The Strategist

IKEA may raise prices for the first time since 2019

11/04/2021 - 02:56

Household goods chain IKEA may resort to price increases for the first time since 2019, while the company's profits are shrinking due to supply disruptions, Inter Ikea chief financial officer Martin van Dam said.

HŒkan Dahlstršm
HŒkan Dahlstršm
"We do, indeed, want to keep prices as low as possible. We cannot let this period of time change us... We want to compensate for this price increase as much as possible. But there comes a point when we can no longer hold them down. This is something we do not like," the Financial Times quoted him as saying.

The publication notes, however, that this price increase could be the first since 2019 and is likely to be stronger than it was then.

The CFO said supply disruptions would continue to affect the company's financial results in 2022 and therefore profits would continue to fall. "FY2022 will not be easier than FY2021, it will be tougher... it eats away at our profits a lot," van Dam said.