The discount model of Swedish home furnishing company Ikea appears to be facing strain as the prices of some of its products have risen by 80% in the United Kingdom in the last 10 months.
Prices on more than a dozen items at Ikea have surpassed inflation by at least two-fold since December 2021, British news outlet Metro reported Tuesday (Oct. 18).
The report pointed to products like the Jokkmokk set of a table and four chairs, which rose from 99 pounds to 179 pounds (about $111-$201), the two-seater Glostad sofa (from 90 pounds to 150 pounds or about $101-$169) and the Slattum double bed frame (from 129 pounds to 189 pounds or $145-213). Price increases of at least 22% were spotted in five of Ikea’s main categories: beds, sofas, mattresses, drawers and dining furniture.
An Ikea spokesperson told Metro the franchise is facing the same pressures as many businesses: increased materials and transportation costs, inflation and the war in Ukraine.
Inflation in the U.K. has hovered at around 10% for months, dipping slightly to 9.9% in August before returning to 10.1% in September. The country’s cost-of-living crisis has left consumers feeling more and more squeezed, with the average grocery bill jumping by 380 pounds ($427) year over year.
Read more: UK’s 10% Inflation Rates Stretch Consumers’ Paychecks and Patience
Ikea said last week that while its retail sales had picked up in the past year, inflation has driven up prices, with supply train troubles making it tougher to get products into stores. Ikea’s total retail sales rose 6.5% year over year during the year ended Aug. 31.
See more: Ikea Pushes Affordability as Inflation Looms
“This year’s challenges continue to give us perspective into people’s life at home, our business and our priorities,” Inter Ikea Group CEO Jon Abrahamsson Ring said at the time. “Homes now fulfill more functions and solve more problems than ever before. That means people need home furnishings and solutions at an affordable price.”
Last month, IKEA said it was expanding the perks of its free loyalty club in a bid to bring more foot traffic to its stores. At the same time, the company is also undertaking a $3 billion store refresh program, outfitting its big blue warehouse-style boxes with fulfillment centers to reflect retail’s customer base to one that is becoming more digitally focused.
Read more: Ikea looks to Drive in-Store Traffic With 5% Loyalty Discount
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