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IKEA Canada is Raising Prices in 2022

IKEA Canada is Raising Prices in 2022

By Simon Hung

It'll be more expensive to buy furniture at IKEA in 2022, as the company will be raising their prices by an average of 9% in Canada this year.

News of the price hike first surfaced on December 30, after Ingka Group (IKEA's parent company) issued a news release about their upcoming initiatives in 2022. In the release, it was mentioned that prices at IKEA stores worldwide will increase by upwards of 9% in 2022 due to continued supply chain issues caused by the COVID-19 pandemic.

"Unfortunately, now, for the first time since higher costs have begun to affect the global economy, we have to pass parts of those increased costs onto our customers," said IKEA Retail Operations Manager Tolga Öncü. "We are taking this difficult step right now to ensure we can live up to our purpose to create a better everyday life for the many people and to safeguard our competitiveness and the resilience of our company."

The supply chain has become a common buzzphrase in retail over the past two years, as a multitude of pandemic-related issues including scarcity of raw materials, rising transportation costs, increased product demand and Suez Canal blockages have contributed to higher prices and fewer discounts at retailers around the globe since 2019.

IKEA Canada reported over $969 million in online sales in 2021 – an increase of 161.5% over 2020.

Some Canadians have already witnessed higher prices at IKEA first-hand, with early reports of price hikes as high as $100.00 on various items including tables, dressers and housewares. As noted by RedFlagDeals user RxMills, the reported 9% figure is slightly misleading, as some prices in Canada have jumped by as much as 30% and the 9% cumulative average is not necessarily the "maximum" amount. An exact catalogue of impacted products is unknown, but bigger-ticket items like furniture will likely see price increases across the board, partly due to much higher furniture tariffs introduced by the Government of Canada in 2021.

Discounts at IKEA Canada have been infrequent over the past two years, as the company has opted to skip traditional sale events like Black Friday in favour of more trade-in and food-related deals in 2020 and 2021. Despite this, IKEA's online sales skyrocketed in 2021, with the company reporting 1.8 million orders delivered and $969.48 million in online sales over the past year – increases of 63% and 161.5% over 2020, respectively.

While Öncü does note that any future price decreases will be trickled down back to customers, it's unknown when or even if IKEA shoppers will see lower prices in the near-future, as pandemic-related uncertainties will likely continue well into 2022, if not longer.

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Source: Ingka Group, with additional figures from IKEA Canada

32 Comments

    • RxMills wrote:

      They're not alone in doing so. The federal government has been manipulating its inflation data for many years to minimize income increases for union and pension incomes that are tied to its annual inflation number. They'll also substitute items from time to time. Beef was once calculated as the average pound price of a beef roast. Now they use hamburger beef.

      Federal governments will continue to say its "temporary" and "due to supply chain issues". This way, you'll blame businesses and perhaps even the unvaccinated, instead of blaming government policies. In reality, it's also a result of massive government funding, money printing, near-zero interest rates, ongoing easing of corporate debt through bond purchases, etc. etc. - not forgetting the occasional 300% increase in import duties. Governments will eventually need to find more ways of bringing in more government dollars to support its ever-increasing spending. Ultimately, we'll be that source through every means possible - increasing carbon taxes, gas taxes, capital gains taxes, etc.

      Image
      Not this trope again.

      This statement is completely and utterly false.
      "Beef was once calculated as the average pound price of a beef roast. Now they use hamburger beef."

      Whether the rest of your politically motivated assertions have any validity is moot when basic fact-checking is entirely absent.
    • Report Post
    • Nothing new. Real inflation is probably sitting at 15-20 percent in line with the increase money supply. No one truly believes inflation is only at 4.5%. It's scary how quickly our money is being devalued.
    • Report Post
    • zakarydoks wrote: I think this table went from $200 to $300. I've been trying to buy it for months then gave up because it was never in stock.
      https://www.ikea.com/ca/en/p/ravaror-di ... -40454522/
      Nice clean design. $200 would seem an appropriate price and wouldn't give it too much thought. For $300, I'd have to evaluate it in-person to know if there's $300 in it. Ikea has many new design items coming out. They have more freedom to launching those products at elevated prices without any history attached to them.

      The Canadian dollar could also be an influencer in affecting Ikea Canada's retail prices in future months. Ikea has more freedom now by not printing a paper based catalog with prices. If I'm not mistaken, their greener online catalog does not contain any prices now. Therefore, an item's price can increase at any time.

      An industry specialist with a ton of experience stated that the shipping industry (ports, etc.) won't be caught up until the end of 2023 - and that's if significant changes are implemented at the ports immediately, regarding the backlog of cargo containers at U.S. ports. He said it's all about U.S. demand and empty containers are very slow to return to China, thereby affecting other deliveries. It's a shipping "web", not a "chain", he asserts.

      Why are shipping containers stacked at sites... (same at all major ports)
      https://www.bbc.com/news/uk-england-suffolk-59220447
    • Report Post
    • Inflation is real.

      Guess people will need to cut back on their overroasted overpriced starcraps coffee to survive. #wewillsurvive
    • Report Post
    • The shipping container crisis, chip shortage, gas increases, wood prices, etc.

      Has severely impacted everywhere in terms of pricing.
    • Report Post
    • GhostBusters wrote: The shipping container crisis, chip shortage, gas increases, wood prices, etc.

      Has severely impacted everywhere in terms of pricing.
      I don't think people realize how much a container costs now compared to pre-pandemic. They are sitting around 5-6X, so no surprise goods are increasing in price.
    • Report Post
    • Morphius909 wrote: Inflation is real.

      Guess people will need to cut back on their overroasted overpriced starcraps coffee to survive. #wewillsurvive
      You know, the other problem that occurs when currency devaluation happens is that companies stop selling goods in Canada, since they don't want our worthless bills.
    • Report Post
    • RxMills wrote: Although Ikea has put out a press release of a general 9% price increase, in reality, people are seeing 25-50% increases in prices for many items. But Ikea can still be statistically correct with its 9% number, depending on how in plays with its price change data.

      Bag ($1) = 0% increase
      Pan ($3.99) = 0% increase
      Sofa ($1300) = 30% increase ($300)
      = Average 10% increase in prices

      Just one little example:

      LACK side table (https://www.ikea.com/ca/en/p/lack-side- ... -20011408/)
      Was $9.99
      Now $12.99
      (30% increase)


      Ikea Canada is getting hit harder with inflationary price increases as a result of the Federal Government's 295% increase on furniture duties from imports of furniture products from China. (https://www.ctvnews.ca/business/massive ... -1.5469769)

      Post your findings and opinions.

      Image
      wow. I just bought that exact one like in Nov. Very cheap and light. 30% increase is what I was not expecting but prices are so high for everything. reality check.
      GhostBusters wrote: The shipping container crisis, chip shortage, gas increases, wood prices, etc.

      Has severely impacted everywhere in terms of pricing.
      true.
    • Report Post
    • In addition to continuing an ongoing wave of price increases, Ikea has recently changed its notifications on many items. Before, you could setup notifications for every item currently out-of-stock. Now, for many items, that notification is unavailable. They simply can't say if that item will ever be restocked because of "supply chain issues".
      Stock information not available

      Due to ongoing industry-wide supply challenges, we are unsure when this item will be restocked and therefore our stock notification feature is not available. Unfortunately, our co-workers do not have any more information than is provided here, however you can check back on IKEA.ca as we work with our partners to replenish supply as quickly as possible.
      For out-of-stock products that you've already setup stock notifications for, don't assume that the product (if it ever is restocked) will come in at the same price. It may come back in with a price tag that's 25-40% higher.

      Image
    • Report Post
    • Why is this being downvoted lol.

      So just that people know, when some central bank bureaucrat says that inflation is "transitory", they're not saying that prices will rise and then start to fall. They'll rise and then stop rising. But they won't go back down.
    • Report Post
    • I feel like they increased their malm 3 drawer dresser from $99 to $129. I was going to buy it and I am sure it was $99 and then I checked and it was $129.
    • Report Post
    • Yes, the coupe glasses were always $14.99 for 4.. now they are $19.99!
    • Report Post
    • In the past few days, Ikea Canada has decided to obsolete a significant block of items - now updating their listing to say "Now or Never".

      The two Vancouver-area stores (Richmond, Coquitlam) are out-of-stock on many items, though they still have stock at several east coast locations. West coast customers may want to re-check their out-of-stock watch list. If those item descriptions have been updated to "Now or Never", you won't likely ever see them re-stocked.

      Interestingly, many of the items on my watch list that were just updated to "Now or Never" status are still listed as current products at Ikea USA, so their obsolescence may be unique to Ikea Canada. The reason for this may be that short-supplied items will easily get higher prices from Ikea USA at the moment as a result of their stronger demand, stronger economy and stronger currency (USD vs CAD).

      But Ikea Canada's price for that same furniture item is going to cost significantly more now in Canada, compared to the USA, for one bigger reason: Canada's new 295% increase in furniture tariffs for Made-in-China furniture items. That new duty/tariff/tax obviously did not happen at Ikea USA. If you were the Ikea Corporate Office, where would you send that production strained item?

      Image
    • Report Post
    • The dresser we were looking at went from $299 to $380. Thats a significant price increase.
    • Report Post
    • https://www.ikea.com/ca/en/p/huvudspela ... -70507604/

      $69 regular price couple of months ago, now $89 reg.


      Welcome to IKEA COQUITLAM
      MON-FRI 10-9, SAT 10-8, SUN 10-7PM
      IKEA Family C
      Article 70507604 22121
      HUVUDSPELARE 69.00 GP
      -------------
      Net total 69.00
      Tax:
      GST 5.00 % 3.45
      PST 7.00 % 4.83
      -------------
      Total 77.28
      Total items: 1
      DATE/TIME: 11/11/21 6:44 PM
    • Report Post
    • Anyone have any ideas where else to shop?

      I've been coming up short on similar styles and prices to Ikea even with increases.
    • Report Post
    • lennyandcarl wrote: Anyone have any ideas where else to shop?

      I've been coming up short on similar styles and prices to Ikea even with increases.
      Wal*Mart -- but a lot of their stuff is junk. Same with JYSK. Ikea is still one of the better options for cheap-ass furniture. We got this place in Kitchener that sales chairs for $10,000 and $20,000 for a couch. Mind you, great quality, and it'll last forever. But I don't have money to burn like that.
    • Report Post
    • jeff1970 wrote: Wal*Mart -- but a lot of their stuff is junk. Same with JYSK. Ikea is still one of the better options for cheap-ass furniture. We got this place in Kitchener that sales chairs for $10,000 and $20,000 for a couch. Mind you, great quality, and it'll last forever. But I don't have money to burn like that.
      I've been a big fan of Ikea for years when everyone said it was junk. The people saying that are comparing it to those $20,000 couches and not the $250 futon at Walmart (which is god awful by the way! even when it was $150)

      I hope Ikea gets their shit together soon. I bought a house in January and there still isn't anything in stock still!

      The next best thing seems to be Costco but you're stuck with ordering online or the one item they have in store.
    • Report Post
    • lennyandcarl wrote: I've been a big fan of Ikea for years when everyone said it was junk. The people saying that are comparing it to those $20,000 couches and not the $250 futon at Walmart (which is god awful by the way! even when it was $150)

      I hope Ikea gets their shit together soon. I bought a house in January and there still isn't anything in stock still!

      The next best thing seems to be Costco but you're stuck with ordering online or the one item they have in store.
      Ikea quality is OK, and I have enough Ikea furniture. Wal*Mart and JYSK is mostly horrible. But I think complaining about the prices at Ikea, one needs to keep in mind that other retailers charge a lot more.

      And I hear ya regarding getting their shit together, as there are a few items I want to buy, but can't.
    • Report Post
    • lennyandcarl wrote: Anyone have any ideas where else to shop?
      I've been coming up short on similar styles and prices to Ikea even with increases.
      Ikea has expanded a lot to become an everything store, so it's difficult to say there's another store that's a catch-all alternative.

      Because you're in BC, you're going to have a more difficult time getting furniture. I'm not sure of Ikea Canada's reasoning for that. Ikea in BC is out-of-stock on many furniture items, while other locations in Canada seem to have substantially more stock of those same items. Ikea in BC did put up warnings about supply and delivery impacts due to flooded out highways. Just like when COVID first came out and suppliers suspended shipments, it became a major problem. When shipments completely resume at Ikea in BC, there will be that additional backlog.

      For furniture items, since Canada now imposed that 295% increase in duties for Made-in-China furniture, that will make those products more expensive to Canadians and those prices will come closer to other furniture products made in Canada, the U.S., Italy, etc. - so check all the other furniture stores when comparing, but don't compare to Ikea's furniture items that are out-of-stock now. Ikea brought those into Canada BEFORE the new 295% duty/tariff/tax went into effect for Made-in-China furniture products. Ikea can't get NEW replacements and offer them at the same prices NOW.

      And when comparing those Ikea offered furniture items (Made in China) to those products made in other countries (Canada, U.S., Italy, etc.), of course be sure to compare apples to apples. That Ikea sofa that weighs 30lbs can't be compared well to the Canadian-made (U.S., etc.) sofa that weighs 70lbs because of having substantially more framework for support and longevity.
    • Report Post
    • lennyandcarl wrote: Anyone have any ideas where else to shop?

      I've been coming up short on similar styles and prices to Ikea even with increases.
      Structube is probably the closest thing to Ikea in furniture / price / style.
    • Report Post
    • The low prices and good value at IKEA was always the main selling point. It was always a PITA to shop at - very limited locations, online shopping a complete afterthought and nightmare at the best of times, not to mention still having to pay to ship items to a depot for pickup.

      I guess if you can't keep anything in stock you might as well jack up the prices on what you do have, on top of the other reasons already mentioned.

      The value is still OK on the items they do have in stock, but I can see most people turning to more convenient alternatives that are closer to home or will ship.
    • Report Post
    • But the Federal Government says inflation is only 4.7% over the past 12 months. (?)
      We're seeing 25-40% on common everyday items over a few months, and that's not over a 12 month period.
    • Report Post
    • Last week the IKEA Millberget chair was $79.99. Today it's $129.99. That's a 63% increase.
    • Report Post
    • They increased 2 hot dogs and a drink from $2.25 to $3.00. 😱 Thats a 33% increase! 😱
    • Report Post
    • Sofa that we had bought went from 599 to 699

      But they introduced another model that seems to have taken over the 599 price point

      Happy cause prices changed just a few weeks after we purchased
    • Report Post
    • Detolf display cabinets have been going up in price a few times. It use to be 69.99, then increase to 79.99 a few years back and last year increase to 89.99 and now is 99.99.
    • Report Post
    • Ikea Canada in the news.
      After a global price hike was announced, IKEA Canada revealed that it has "no choice" but to increase the cost of its products because of "changing economic conditions" related to supply chain issues. On January 15, IKEA Canada responded to a customer who questioned why the cost of an item went up and tweeted that despite its goal of keeping prices "as affordable as possible," an increase to prices had to be introduced.
      Lisa Huie, public relations leader with IKEA Canada, told Narcity on January 18 that the stores here are currently in line to have an increase of 9% like what's being seen around the world.
      9%? That may be Ikea's average price increase around the world, but Ikea Canada isn't raising prices by only 9%.
      Back in October 2021, IKEA Canada revealed that it would be giving out $6 million in bonuses to employees across the country for working during the pandemic!
      That'll bump up prices too.

      IKEA Canada Is Raising Prices This Year & The Company Says There Was 'No Choice'
      https://www.narcity.com/ikea-canada-is- ... -no-choice

      (Ikea's not as bad as the Gov't of Canada though, who continues to claim inflation is running only 4.7% annually.)
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