Fridge prices surge 30%, says retail CEO

Fridge-freezer
Fridge-freezer prices have surged 30% this year, says Buy It Direct boss
// The price of white goods has risen by more than 30% over the past year, according to Buy It Direct boss Nick Glynne
// Soaring prices have led consumers to hold off buying new appliances, Glynne added

The prices of fridge, freezers and dishwashers have soared by a third in the past year, the CEO of Appliances Direct owner Buy It Direct has said.

Nick Glynne blamed rocketing shipping costs, Covid lockdowns in China and shortages of materials for the price hike and warned that prices would increase further.

He told BBC Radio 4’s Today programme: “If you look at a large American fridge freezer that we bring in over from China, pre-Covid that cost around £12 to ship, £12 door-to-door from a factory in northern China across to the UK and that would take six months lead time,” he said.

“Now we’re looking at 12 to 14 months lead time and the price for freight alone has gone up to around £80 for that unit. So a £299 fridge has now got a £70 increase in cost, which has a knock on effect to the consumer.”

He added that Appliances Direct, which holds an 8% share of the UK appliance market, was forced to pass on these price rises to its customers.


READ MORE: Cost-of-living crisis to wipe £12bn from discretionary spent in 2022


Consumers tighten the pursestrings

Glynne said that rising prices had led to hard-pressed shoppers holding off on big ticket purchases and admitted the retail group, which also owns Laptop Direct and Furniture 123, had laid of 150 of its 1,500 employees in anticipation of a slowdown in consumer spending.

Glynne’s warning on shoppers pulling back spending echoed those of Made.com chair Susanne Given, who said that “the customer has definitely held back in the short term financially”

“The macroeconomic backdrop means that, however big a customer’s budget, they are thinking about spending,” she said.

Consumers are facing surging costs in areas such as petrol, electricity and food as the UK faces the biggest cost of living crisis since the early nineties.

Glynne warned that customers will face steeper price rises in the year ahead.

He said: “Our replacement stock is getting more expensive. It is going to get worse this year rather than get better. Consumers may think they’ll get bargain by waiting but they won’t.”

Click here to sign up to Retail Gazette‘s free daily email newsletter

1 COMMENT

  1. Shipping lines such as MSC and Maersk are ripping off their customers. They are charging eight times as much as they used to and making obscene profits out of it. I have just resigned from a well known freight forwarder as I couldn’t continue with the over charing of our clients. This is pure greed.

LEAVE A REPLY

Please enter your comment!
Please enter your name here