Ikea confirms UK price hikes due to Covid

Ikea is on track to become carbon positive by 2030
Ikea is on track to become carbon positive by 2030
// Ikea confirms 10% price hike in UK stores due to Covid
// Supply chain issues have seen shipping and raw material costs rise significantly

Ikea has confirmed it has been forced to increase the average price of products in its UK stores due to rising supply chain costs, as a direct result of the Covid-19 pandemic.

The Swedish furniture specialist said it has been forced to increase prices in the UK by more than the global average (9%) due to “local market conditions”, including increased HGV and logistics costs.

However, some items of flat-pack furniture have been increased by up to 50%, in a move that will add to consumers’ growing concern about the rising cost of living in 2022.

The issue was first raised by customers via social media, with many noticing the sharp increases after Christmas.

Ikea responded on Twitter, saying: “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.”

Read more: Ikea profits take a hit due to supply chain disruptions

The company had since confirmed that it has had to raise 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.

“While individual price increases vary, the average increase is 10% in the UK, in line with the global average of 9%.

“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.”

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