IKEA has increased the cost of flat-pack furniture prices by up to 50 percent. This is due in part to the spiralling costs of supply chains, which IKEA blames on the coronavirus crises.
As shipping costs, energy, and raw materials rise, desks and beds will be among those items that see huge overnight price increases.
As a result of rising fuel prices, higher taxes and increased shop prices, many households will be facing major financial difficulties next year.
Swedish furniture company IKEA announced price increases in UK shops.
The Malm desk, pictured, will increase from £99 to £150 in the New Year
A Hemnes daybed frame has increased from £215 to £279 according to figures seen by the Daily Mail
Made.com’s green Branagh sofa rose from £1,399 to £1,499 this year while its Orson sofa jumped from £949 to £1,049 – a rise of 11 per cent
Data released this month showed prices are climbing at the fastest pace for ten years – fuelling fears the UK will be hit by a cost of living crisis next year.
Ikea has 27 UK stores. It announced that it would increase its prices an average of 9% across all ranges and countries. In some cases, however, the increase has been much higher.
Its Malm desk has risen from £99 in mid-December to £150 today – a rise of 52 per cent. Meanwhile a Hemnes daybed frame has increased from £215 to £279, according to a Daily Mail analysis of archived Ikea web pages.
The Klippan two-seater sofa has risen from £199 to £229 – an increase of 15 per cent – while the price of an Alefjall office chair has jumped by more than a fifth to £279.
Customers complained that they placed items into their baskets in the week leading up to Christmas only for the prices to rise before they paid. A spokesman for Ikea said: ‘The effects of Covid-19 continue to evolve and impact industries all over the world.
‘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.’
Other furniture retailers to have seen a jump are Wayfair whose Wentworth eight-seater outdoor cube set rose from £1,099 in September to £1,699. Its Secreto Ottoman has also risen from £109 earlier this year to £129.
Made.com’s green Branagh sofa rose from £1,399 to £1,499 this year while its Orson sofa jumped from £949 to £1,049 – a rise of 11 per cent.
Households are already expecting massive increases next year with the Resolution Foundation think-tank estimating they could face a hit of at least £1,200.
Inflation has jumped to above 5 per cent while rising gas prices could add at least £600 to budgets when the energy price cap is reviewed in spring. Ikea and other major retailers have also been hit by a storm of extra costs – including shipping and transport.
Transporting a ton of freight from China or Bangladesh could cost upwards of £12,000 due to pandemic disruption – compared with just £1,400 in 2019.
The cost of HGV drivers and warehouse employees has gone up as a result of shortages that have hit their operations on the continent.