Ikea hoists its prices and blames Covid supply pressures
Ikea has increased the price of its flatpack furniture by up to 50%, blaming supply chain costs caused by Covid-19, in a move that will further stoke growing concern about the rising cost of living.
After customers complained that prices appeared to have risen sharply after Christmas, the retailer said it was no longer able to absorb increased costs and was passing them on to consumers.
An Ikea spokesperson tweeted: “Unfortunately, there has been a significant increase in costs across the supply chain, including in raw materials, transport and logistics. As this is still ongoing it is necessary to increase prices across many of our products.”
Archived versions of Ikea’s website from as recently as October showed significant price increases, including a Malm desk that has gone up from £99 to £150, a jump of more than 50%.
The price of a Hemnes daybed has gone up from £215 to £279, a 30% rise, while an Alex nine-drawer unit increased 35% from £85 to £115, according to archived versions of the Ikea website from earlier this year.
A Kura children’s bed was up by 14% to from £129 to £150, while Ikea’s Klippan sofa, one of the Swedish store’s most popular items, is £20 more expensive – a rise of 11% – at £199.
Ikea confirmed that the company had raised prices across multiple countries and ranges. A spokesperson said: “Since the start of the pandemic, Ikea has managed to absorb the significant cost increases experienced across the supply chain while keeping prices as low and stable as we possibly can. Now, like many other retailers, we have had to raise our prices to mitigate the impact on our business.
“Price increases vary but remain in line with what we are seeing globally at Ikea, which is approximately a 9% average increase across countries and the product range. Affordability remains at the heart of our business, and our focus will always be on continuing to offer
quality, sustainable home furnishings people.” at an affordable price for the many