Ikea Increases UK Prices After Hike of Import Costs Following Brexit Referendum

As a result of higher costs of import after the drop in sterling following the Brexit vote, Ikea has raised prices on some of its products in the United Kingdom.

The Swedish firm increased prices by 3.6 percent in a number of areas to counter a 13.7 percent increase in the cost of imports.

The flat-packed furniture retailer unveiled its increased prices after it gave an update on its performance in the United Kingdom, with total sales growth in 2017 by 6 percent to £1.8bn.

Ikea said that it increased its market share by 0.5 percent, bringing it closer to a projected target of 15 percent market share by 2027.

Gillian Drakeford, the Retail manager for Ikea UK and Ireland, stated: “Despite a level of economic uncertainty, our brand is even more relevant and we continue our efforts to bring affordable, well-designed home furnishing solutions to the UK.

“The Brexit vote has been on everyone’s lips and the devaluation of the pound has been a challenge for many businesses.

“As we import a lot of our products from overseas, this increased our costs by 13.7%. To keep our range accessible and affordable for the many, we absorbed most of these costs, increasing prices by just 3.6%.”

Ikea said that it generated 1,000 jobs in 2017 despite the Brexit vote and the company plans to recruit 850 additional workers when it launches stores in Exeter and Greenwich.

The firm, which has 20 branches across the United Kingdom employing 10,900 people, said that it saw an increase in online sales as it rose by 10 percent since it was launched in 2016.