Ikea hikes prices by up to 80 per cent, blaming pandemic and invasion of Ukraine

The furniture giant, which has a store in Wednesbury at Junction 9 of the M6, has blamed "surging raw material and transport costs" for the price hike, citing the pandemic, inflation rises, and the invasion of Ukraine as reasons for rising costs.

Research by Retail Week found Ikea has raised prices on products such as the Jokkmokk dining table and chairs, which increased by 80 per cent from £99 to £179 since last year.

A Glostad two-seater sofa was £90 and is now £150, an increase of over 60 per cent, while a Brimnes chest of drawers increased 47 per cent, from £85 to £125.

A Vatneström super king mattress increased by 32 per cent from £650 to £859, while bed frames Fyresdal and Slattum both spiked by 46 per cent to £219 and £189 respectively, according to archived versions of Ikea’s website.

The budget furniture retailer faced customer complaints in December last year after a round of steep price rises, which it blamed on supply pressures due to Covid-19, and confirmed that another round of sharp price rises of up to 30 per cent had taken place within the last few months.

An Ikea spokesperson told Retail Week: “We offer a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible are able to afford them. This remains our focus today and in the future.

“However, we are not immune to the macro-economic developments that businesses, retailers and the public are currently facing, from the increased cost of materials and transportation to the war in Ukraine and inflation.

“It is critical that we are financially resilient for the long term, to ensure our longevity as a business and employer, and we have had to adjust our prices to reflect this increased cost base.

“Our approach during this period has sought to protect the prices of our most-loved and lowest-priced products and families.”

Ikea said prices continue to be a “key cornerstone” of the business and it intended to keep them as low as it can and reduce them when possible.

The retailer also said it had recently implemented new offers to support shoppers during the cost of living crisis on its Ikea Family loyalty scheme.

In its annual results, the retailer said that, although sales had grown in the financial year 2022, volumes had not kept up and supply chain shortages had caused availability issues.

Inter Ikea Group chief executive Jon Abrahamsson Ring said: “Ikea prices remained relatively stable for several years. That gave us an advantage when competitors raised prices early in the pandemic.

“Unfortunately, we can’t ignore surging raw material and transport costs. Long term, we remain committed to affordability for the many people around the world.”

The rocketing prices come as Ikea posts a record 6.5 per cent increase in retail sales, or 3.5 per cent when measured for local currencies, to €44.6bn (£38.9bn) for the 52 weeks ending August 31, 2022.