Ikea lifts prices to meet rising costs

Ikea hikes prices to meet rising costs

Ikea has implemented an almost double-digit increase in prices, with some items being increased by more than 50%.

‘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,’ says the chain.

‘Price increases vary but remain in line with what we are seeing globally at Ikea, which is approximately a 9% average increase across countries and the product range. Affordability remains at the heart of our business, and our focus will always be on continuing to offer quality, sustainable home furnishings at an affordable price for the many people.’

Although the average increase is 9%, some items have been increased by substantially more. The Malm desk has gone from £99 to £150; a Jokkmokk table with four chairs has risen from £99 to £149; the Hemnes daybed is 30% more expensive at £279; while an Alex nine-drawer unit increased 35% to £115.

The group warned in November that it was likely to have to raise prices

Housing Units lifts sales

Interiors retailer Housing Units saw sales increase during last year’s lockdowns.

In the year to 28 March 2021, sales rose from £24.6m to £25.05m.

‘The business’s other key measures of performance, EBITDA £2,921,000 (2020: £1,642,000) and profit before tax, £2,786,000 (2020: £1,542,000) increased during a period of unprecedented trading challenges for the business,’ it says.

‘Normal trading activity was significantly disrupted due to the restrictions put in place by the government in an effort to contain the impact of the Covid-19 pandemic. Throughout the periods of government-enforced closure of non-essential retail premises from March 2020 to April 2021 online sales levels performed strongly.

‘During the periods within which the retail site was allowed to re-open, pent-up consumer demand resulted in significant growth in sales order volumes compared to historic trading patterns.’

More shows rescheduled

April’s planned Salone has been moved to 7-12 June, with Heimtextil and Proposte also re-timed.

‘The decision will enable exhibitors, visitors, journalists and the entire international furnishing and design community to make the most of an event that promises to be packed with new things, in total safety. As well as celebrating a major 60th anniversary, the event will focus on the theme of sustainability, acting as a showcase for the progress made,’ says Maria Porro, Salone del Mobile.Milano president.

‘Moving the event to June will ensure a strong presence of foreign exhibitors and professionals, always one of the Salone’s strong points, and give companies time to plan their presence.’

Heimtextil will take place as a one-off summer event, after January’s planned show was cancelled. The exhibition will take place from 21-24 June, alongside Techtextil and Texprocess.

Fabric exhibition Proposte has been pushed back to 26-28 April. It will again take place at Villa Erba overlooking Lake Como.

Property moves to boost Likewise

Flooring distributor Likewise has revealed a trio of property moves to boost capacity.

It has agreed to relocate Likewise North East into larger premises in Newcastle, increase capacity at A&A in Manchester by 50% by using the adjacent unit and use Valley Wholesale Carpets’ distribution centre in Newport to target South West England and South Wales.

The Newport move comes after the completion of the £30m takeover of Valley. David Stottor, Floorco commercial director became md on 17 January, with Simon Miller remaining as operations director. David Mitchell will take part in a handover period, 40 years after he founded the company.

Likewise says Valley will operate autonomously from its distribution centres in Erith, Kent and Derby.

The group saw sales jump 29% to £61m in 2021 and says pre-tax profits will be about £1.6m.

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