Swedish-based furniture maker and retailer has surrendered to inflation, writes Rafaela Lindberg for Bloomberg News via The Philadelphia Inquirer.
“It hurts my soul that we had to raise prices,” said chief executive officer Jon Abrahamsson Ring in an interview. “Unfortunately, we can’t ignore surging raw materials and transport costs.”
Despite absorbing nearly $975,000 in costs, it wasn’t enough for the furnishing giant. Its leadership had no choice but to hike the costs of products. However, the CEO says they were still able to lower the price on some goods.
In addition to inflation, supply-chain disruptions are also a concern for the conglomerate. Cups and lamps sourced from Asia are in short supply. In turn, Ikea has a low volume of goods, but it still hit another sales record, owing to the price increases.
The CEO has hopes that this fiscal year will bode well for the company, with the potential for inflation and supply-chain disruptions softening.
Read more about Ikea’s battle with inflation in The Philadelphia Inquirer.