Contact Us

Ikea blames higher costs for price hikes in German stores

Published January 18,2023
Subscribe

The furniture retailer Ikea justified some significant price increases in its German stores last year by blaming higher costs for purchasing, transport and energy.

Germany's Bild newspaper compared the current prices of selected products with those of the previous year and came up with increases of up to 131% - for example for the bed frame called Nesttun.

Prices for Ikea classics such as the Billy bookcase, were up 53%. The Pax wardrobe doubled in price between 2021 and last year.

Ikea did not comment on individual increases on Wednesday, but said in a written statement that it had been unable to avoid adjusting prices for some items in 2022

Previously, the company had absorbed most cost increases in the global supply chain. When supply chains stabilized and inventories improved last autumn, Ikea lowered prices, it said.

Ikea, the largest furniture retailer in Germany, did not rule out further price increases, explaining that it was "not immune to the current economic challenges, such as significantly increased purchase prices, not only for our products, but also for energy and transport."

Other furniture stores in Germany have pushed through big price hikes too, according to the Furniture and Kitchen Trade Association (BVDM).

Furniture factories had increased their sales prices across the board by between 20% and 30%, BVDM President Markus Meyer told dpa.