Ikea blames price hikes on Covid supply pressure

Ikea has increased prices on its flat-pack furniture after it warned at its full-year results in November that higher transport and raw material costs may need to be passed on to the consumer in the year ahead.

Customers have complained that Ikea’s prices rose sharply after Christmas, which a spokesperson for the retailer has confirmed.

“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,” the spokesperson told The Guardian.

Since October, prices on staples such as a Malm desk have jumped from £99 to £150, while a Jokkmokk table with four chairs has jumped to £149 compared with £99 earlier this year.

The price of other popular items, such as the Klippan sofa, has increased 11% to £199, while the cost of a Hemnes daybed has risen nearly 30% from £215 to £279.

The spokesperson for Ikea 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 at an affordable price for many people.” 

• Don’t miss the best of the week – sign up to receive the Editor’s Choice every Friday