Israel's Economy Ministry slams IKEA's high prices

IKEA Beer Sheva Photo: Roy Lind

The Ministry of Economy and Industry has published a survey showing that IKEA's prices are far higher than prices at Home Center, ACE, and small furniture stores.

Israel's Ministry of Economy and Industry has published a survey by the Israel Consumer Council, which states, "Some of IKEA's products are much more expensive than similar products at the Home Center and ACE chains… Surprisingly, the small furniture stores, which have little purchasing power, are also far cheaper than IKEA in a variety of products."

Examples sited by the survey include a three-door closet sold for NIS 2,615 at IKEA, "while the prices average NIS 924 at the ACE and Home Center chains and NIS 1,050 at the small stores."

In another example, "A school desk at IKEA was sold for NIS 645, while prices averaged NIS 195 at ACE and Home Center and NIS 466 at the mall stores. The differences are up to 230%."

Can prices of closets, tables, or any other furniture item be compared with non-identical items? The Ministry of Economy and Industry also realizes the problems with these comparisons. "It is important to stress that the products being compared are not the same. The important conclusion is therefore to be a good consumer by checking and comparing before buying," the Ministry of Economy and Industry states in its announcement.

In any case, the survey published by the ministry contained 25 furniture items from different categories. Through the Consumer Council, the ministry chose to focus on prices at IKEA, ACE, Home Center, and small local stores.

The Ministry of Economy and Industry adds, "The Ministry of Economy and Industry recently conducted a price comparison survey, and found that IKEA Israel was 32% more expensive than in the other countries examined, except for Denmark. It was further found that the countries in which the gap was the greatest were Italy (56%), the Netherlands (56%), and Austria (53%)."

The differences between IKEA's prices in Israel and in the rest of the world make justifiable headlines from time to time. This comparison is easy, because the same products are involved, and the prices are displayed on the company's websites. The difference is outrageous, as is the case with many products sold in Israel at much higher prices than in other countries.

IKEA Israel said in response, "We are proud of the quality, great variety, responsibility, and the best value that we are giving to the Israeli consumer."

Published by Globes, Israel business news - en.globes.co.il - on February 5, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020

IKEA Beer Sheva Photo: Roy Lind
IKEA Beer Sheva Photo: Roy Lind
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