Ikea warns of price increases amid supply chain challenges
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.
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