That’s not very festive! Ikea hikes prices by 50% as Covid pandemic sends supply chain costs soaring
- European furniture retailers are increasing the price of goods in their UK stores
- Retailers claim the hikes are due to difficulties with shipping and energy prices
- Customers complain prices have increased over the Christmas period
IKEA has hiked the prices of its flat-pack furniture by as much as 50 per cent, blaming the coronavirus crisis for spiralling supply chain costs.
Desks, beds and wardrobe sets are among the items to see massive overnight price rises as the costs of shipping, raw materials and energy soar.
Households are already bracing for a major squeeze on their finances next year due to soaring energy bills, tax increases and rising shop prices.
Swedish furniture retailer IKEA has announced a range of price hikes for goods in its UK stores
The Malm desk, pictured, will increase from £99 to £150 in the New Year
A Hemnes daybed frame has increased from £215 to £279 according to figures seen by the Daily Mail
Made.com’s green Branagh sofa rose from £1,399 to £1,499 this year while its Orson sofa jumped from £949 to £1,049 – a rise of 11 per cent
Data released this month showed prices are climbing at the fastest pace for ten years – fuelling fears the UK will be hit by a cost of living crisis next year.
Ikea, which has 27 stores in the UK, said it will raise its prices by an average of 9 per cent across ranges and countries. However, in some cases the jump has been considerably higher.
Its Malm desk has risen from £99 in mid-December to £150 today – a rise of 52 per cent. Meanwhile a Hemnes daybed frame has increased from £215 to £279, according to a Daily Mail analysis of archived Ikea web pages.
The Klippan two-seater sofa has risen from £199 to £229 – an increase of 15 per cent – while the price of an Alefjall office chair has jumped by more than a fifth to £279.
Customers reported placing items in their basket in the week before Christmas, only to find the price had risen before they checked out and paid. A spokesman for Ikea 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.’
Other furniture retailers to have seen a jump are Wayfair whose Wentworth eight-seater outdoor cube set rose from £1,099 in September to £1,699. Its Secreto Ottoman has also risen from £109 earlier this year to £129.
Made.com’s green Branagh sofa rose from £1,399 to £1,499 this year while its Orson sofa jumped from £949 to £1,049 – a rise of 11 per cent.
Households are already expecting massive increases next year with the Resolution Foundation think-tank estimating they could face a hit of at least £1,200.
Inflation has jumped to above 5 per cent while rising gas prices could add at least £600 to budgets when the energy price cap is reviewed in spring. Ikea and other major retailers have also been hit by a storm of extra costs – including shipping and transport.
Transporting a ton of freight from China or Bangladesh could cost upwards of £12,000 due to pandemic disruption – compared with just £1,400 in 2019.
At the same time the cost of employing HGV drivers and warehouse staff has soared as shortages sting their operations across the continent.
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