Ikea hikes prices by 10 per cent as supply chain woes continue
Ikea confirmed this morning that it has boosted the average price of products in its UK stores by 10 per cent, as supply chain issues continue to disrupt its operations.
Analysis by the Daily Mail found that some beds, wardrobes and desks have spiked in price by as much as 50 per cent in the past week. For instance, a Malm chest of drawers has gone up from £99 in mid-December to £150 today – a jump of 52 per cent.
Customers took to Twitter to complain about the hike following Christmas, and a spokesperson for the iconic Swedish brand replied that the company had experienced a “significant increase in costs across the supply chain”.
The statement faced some backlash from those on social media, with users pointing out that the flat-pack specialist still made a profit last year, which was €4.5bn (£3.8bn).
The retailer confirmed today that it has been forced to increase prices in the UK by more than the global nine per cent average due to “local market conditions”, including increased HGV and logistics costs.
A spokesman said: “The effects of Covid-19 continue to evolve and impact industries all over the world.
“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.
“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 10% in the UK, in line with the global average of 9%.”
On top of this, new post-Brexit rules due to come into force in the new year could also cause delays to shipments, thereby influencing the Swedish company’s move away from absorbing customer costs.
According to analyst predictions, households are facing a cost-of-living crisis in 2022, with each home set for a £1,200 increase in bills next year as energy prices soar.