IKEA Canada Is Raising Prices This Year & The Company Says There Was 'No Choice'

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After a global price hike was announced, IKEA Canada revealed that it has "no choice" but to increase the cost of its products because of "changing economic conditions" related to supply chain issues.

On January 15, IKEA Canada responded to a customer who questioned why the cost of an item went up and tweeted that despite its goal of keeping prices "as affordable as possible," an increase to prices had to be introduced.

"With the rising costs of raw materials and transportation, we had no choice but to raise our prices in order to cover those costs," the furniture retailer said.

IKEA Canada noted that its prices are reviewed regularly regardless of if there has been an increase or a decrease in the cost of its products.

"However, even with these recent price increases, IKEA remains the most affordable option for your home furnishing needs," the retailer claimed.

At the end of 2021, Ingka Group, the furniture retailer's parent company, announced that prices would go up around the world in 2022 as a result of supply chain issues and inflation.

"Unfortunately, now, for the first time since higher costs have begun to affect the global economy, we have to pass parts of those increased costs onto our customers," said Tolga Öncü, the retail operations manager at IKEA Retail with Ingka Group.

This new increase is expected to be around 9% globally but there could be variations in different countries, with the biggest cost hikes likely to happen in North America and Europe.

Lisa Huie, public relations leader with IKEA Canada, told Narcity on January 18 that the stores here are currently in line to have an increase of 9% like what's being seen around the world.

Back in October 2021, IKEA Canada revealed that it would be giving out $6 million in bonuses to employees across the country for working during the pandemic!