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Ikea hikes prices, popular items now costing 50% more in all UK stores

Ikea hikes prices, popular items now costing 50% more in all UK stores
Ikea hikes prices, popular items now costing 50% more in all UK stores

Ikea, the renowned furniture company based in Sweden, has reportedly announced significant price hikes to its product range in all UK stores, blaming the rapidly increasing supply chain costs due to the Covid outbreak.

As per reports, the flatpack furniture brand raised its costs by 10% on average in the country, which is over the average 9% globally. However, some popular items such as wardrobes, beds, and desks have reported a price hike of up to 50% as well.

According to sources, a chest of Malm drawers has shot up 52% in price from £99 in mid-December to £150 as of now. The Hemnes daybed frame’s price went up from £215 to £279, as well as the price of a Klippan two-seater couch has climbed from £199 to £229, recording a 15% hike.

It was the online users who first pointed out the price surge coming in after Christmas.

Ikea answered in a tweet, stating that unfortunately, there has been a large increase in expenses throughout the supply chain, especially in raw materials, transportation, as well as logistics. The company further added in the tweet that because of the ongoing issue it had to raise prices on a lot of products.

Retailers have raised prices in reaction to the pandemic and supply chain problems, which have been exacerbated by a shortage of HGV drivers and staff who have been unwell as a result of Covid.

As a result of the problems, transportation, and raw material costs have increased dramatically.

UK inflation has reached a 10-year high of 5.1%, and the Bank of England has now raised interest rates for the first time in three years, from 0.1% to 0.25%.

As the latest wave of Covid-19 and Omicron variant skyrockets case numbers again, there are also concerns about employment.

Additionally, new post-Brexit restrictions, which came into effect on January 1 this year, might also cause delays in shipments by increasing the amount of paperwork required.

Source credit: https://www.chroniclelive.co.uk/whats-on/shopping/ikea-uk-price-increase-2022-22609654

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Sunil Jha

Sunil Jha has been a part of the content industry for close to two years. Having previously worked as a voice over artist and sportswriter, he now focuses on writing articles for newsorigins.com, across a slew of topics, ranging from technology to trade and finance. With a business-oriented educational background, Sunil brings forth the expertise of deep-dive research and a strategic approach in his write ups.