IKEA Canada is Raising Prices in 2022
By Simon Hung
January 10, 2022It'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.
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
Showing 40 Most Recent Comments
View allThe Lack TV Bench was $15, now it's $30 and has the "our lowest price ever" sticker on it.
I mentioned that to a co-worker and she just shrugged.
$30 for what is essentially cardboard is pure madness now LOL
Also even nuttier is the “our lowest price ever”!!!
That is a 2X increase!! What the heck!!!
So Ikea is paying a lot more to ship their products even if they have a bulk container discount. Top that off with higher material costs.
Then there’s the tax they implemented on foreign furniture.
Almost all companies getting product from across the world is dealing with major increases in costs.
When I went to Ikea everything seemed so expensive and other day I looked at some stuff online and it was expensive too.
I ended up buying from Wayfair. Though it's expensive at times but I find they have some good sale prices, clearance prices and open boxes items.
Bought a kallax 3x4 shelf in March and it was $149. was going to send the link to a friend and found out it is $159 now. Believe the 2x4 also increased by $10.
That probably explains why their recent coupons have gone from $20 off $150 to $25 off $150.
(That's not saying that Ikea's total yearly price increase will be 20%. That's the change in those items for this week only. It'll be interesting to see average price changes over an entire year. Don't wait for a sale. Your dollar's purchasing power, as a result of inflation, will continue to decline due to inflation.)
I returned an item purchased last week because it had some damage. After the return, I went to buy the replacement, and it was about 25% higher! Crazy.
Ontario-Milk Price Increased by 15 percentages
Government continues to say inflation is small and temporary.
"Five-Dollarama? Cost-conscious retailer plans to start selling some items for up to $5"
https://www.cbc.ca/news/business/dollar ... -1.6402280
Canadian manufacturers (mostly brought on by one large manufucturer) started their complaint about the "dumping" of Made in China (and Vietnam) furniture products before the pandemic's supply chain issues. It's fine for a 295% increase in duties during normal times (even though many will still disagree with that), but this is NOT the time for the Federal Government to support large duty/tax increases.
The result is accelarated inflation and worsening supply issues, in the furniture category (and others), enabled by the Federal Government.
Imagine if the Federal Government tomorrow decided to put a 30% import tax on dairy and meat products coming into Canada, or if they put a 30% additional carbon tax on bathroom tissue last year, when shelves were already empty. The government shoud understand that "relief" shoulld come during pandemic times - or at least a postponement of NEW additional taxes and tariffs.
Again, I'm no expert, but it seems the exporters and indeed even the importers had the ability (which they utilized) to argue their points of view and it was not an arbritrary imposition of tariffs. Do you disagree?
With 6-12 month wait times and rapidly increasing prices on furniture, the increased duties/tariffs are NOT seen as putting additional financial hardship on Canadians?
The strategy of the Federal Government seems to be to let the Canadian public blame the storese for retail price increases.
https://www.cbsa-asfc.gc.ca/sima-lmsi/m ... s-eng.html
There's a lot of material here. It does appear due process was followed and it wasn't some random act. Some of it is interesting - Costco asked for a special company exemption because they have a membership model and claimed domestic manufacturers don't like dealing with them anyway. They lost that argument.
So for those holding out for an out-of-stock item, not only is it likely not to return at the previous price, but it's very unlikely to return at all. Most of these items haven't been de-listed at other Ikea countries (e.g. Ikea USA).
The de-listing of many furniture items at Ikea Canada is likely strongly influenced by the Federal Government's recent 295% in duties for furniture that's made in China. That wasn't a nice thing to implement during the supply shortages brought on by a global pandemic. Most furniture items made in Canada or the U.S. are on 3-12 month back-orders these days so Canadian furniture suppliers didn't exactly need the 295% duty/tariff/tax increase that was put on furniture items from China in 2021.
But the problem is... out of stock & out of stock & out of stock & out of stock & out of stock
All picture frames just went up.
Last week one was $9.99, now $14.99. (50% increase)
All the others went up too.
I bought one a week ago as a sample for a project. Then went back to buy 5 more, and that's $25.00 more by waiting one week.
Lots of other price increases that are a little above the Federal Governments statement of 4.7% yearly inflation.
Prices will beyond Ikea Global's statement of a 9% yearly increase in prices. It's starting to feel like Turkey or Venezuela. If you need something, buy it now or you may have to pay much more in a few weeks.
The Ikea experience...
Out of stock
Out of stock
Out of stock
Back in stock at 25-50% higher price!
The cabinet increased from $159 to $199
Sofa increased from $599 to $699
The price increases at Ikea seem to be about 20 - 35% on stuff I've been looking at.
9%? That may be Ikea's average price increase around the world, but Ikea Canada isn't raising prices by only 9%.
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.)
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
We're seeing 25-40% on common everyday items over a few months, and that's not over a 12 month period.
https://www.ikea.com/ca/en/p/sniglar-cr ... -50248541/
Last year $179, now $249 (39% increase)
https://www.ikea.com/ca/en/p/sundvik-cr ... -30248575/
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.