Ikea hikes Irish prices by average 11.2%

Ikea has raised the average price in its Irish stores by 11.2 per cent in the face of cost increases across its supply chain, the flatpack retailer confirmed on Thursday. The rise is higher than an average 9 per cent price hike across the global business.

A spokeswoman for the Irish arm of Ikea said the Swedish group had managed to absorb “the significant cost increases experienced across the supply chain” since the start of the Covid-19 pandemic, while also keeping prices as low as possible.

“Now, like many other retailers, we have had to raise our prices to mitigate the impact on our business,” she added.

“As prices are influenced not only by the raw material prices but also by transportation, logistical costs and local market conditions, price adjustments differ from country to country. Whilst individual price increases vary, the average increase is 11.2 per cent in Ireland, in line with the global average of 9 per cent.”

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Irish stores

Ikea’s largest outlet in the Republic is located at Ballymun in Dublin, while the group also operates an order and collection point in Carrickmines. It has a smaller outlet in Naas, Co Kildare.

In a group statement, Ikea said there was “no anticipated break in the foreseeable future” in relation to transport and raw material constraints.

"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, retail operations manager at Ikea Retail (Ingka Group.