Sunday Times: Ikea 22% more expensive in ROI over NI

Shoppers at Ikea in the republic are paying up to 22% more for identical furniture products than customers in the UK, according to a Sunday Times consumer survey carried out last week.

The price comparison also shows that bargain-hunters in the republic could drive to the Ikea outlet in Belfast to shop and still save money.

Launched last Monday, the Swedish furniture superstore claimed that prices in Ireland’s first and only outlet would be in line with those in the north.

Those claims, however, are disputed by a survey of 15 items from Ikea Ireland’s website.

A shopping list of three products from this list — a Hopen chest, a Malm headboard and a Mandal bed frame — comes to €607. With the €3 parking charge payable between 4pm and 8pm, shoppers would spend €610 for the trip to the store on Dublin’s northside.

The same items in Belfast, which has tended to attract thousands of southern shoppers as it is just two hours away from Dublin, cost £467, or €545 at last week’s exchange rates. Petrol for the 200-mile round-trip across the border costs between €30 and €40 return.

This means that shoppers could get the furniture and come home for about €580 — less than the cost of the same items in Dublin.

An extreme example of the price discrepancy is the Attityd mini-kitchen, which was priced at €799 on the Irish website. On the UK site the same product costs £599 (€699) — €100 cheaper.

Although less expensive items have smaller price differences, there are still variations in the cost of many products. For example, a Tårnby rug listed at €85 in Ballymun, will cost €5 less in Belfast at £69 (€80).

Where customers will see real savings is on the bigger items of furniture, according to the survey. Shoppers who buy several items together, spending a couple of hundred euros, will really notice. Ikea responded to the price comparison by saying that there are 9,500 items in its range.

“It is the case that some items may be cheaper and some may be more expensive, but as Garry Deakin (the store manager) has previously said, on average, prices are more or less similar,” said the spokesman.

The company said that prices are set only once a year and will not change until 2010. However, the company predicts that the pound will strengthen against the euro by Christmas, which it hopes will make the Ballymun store cheaper.

“In addition, pricing at the Dublin store is priced against the euro and local market conditions and not against sterling directly,” said the spokesman. “That VAT is 15% in Belfast and 21.5% in Dublin has some bearing on pricing also.” An average 12,000 people visited Ikea in Ballymun every day this week.

Dermott Jewell, CEO of the Consumers’ Association of Ireland (CAI), called on the furniture giant to “review” its prices and bring them in line with those in Belfast or face losing customers. “Most consumers in the current climate are very price conscious. With the ease of crossing the border they’ll go there for better prices,” he said.

Jewell said that Ikea was made aware of the issue of differing prices before it began work on the Ballymun store. “What’s the point in them even being there if shoppers can get the same product elsewhere for cheaper? They must seriously address their price strategy,” Jewell said.

Elizabeth Morris, from Ballymun, who queued for the opening of Ikea from 7am on Monday, said that the prices are “very cheap”. “We got great stuff for the kitchen and it was cheaper than similar stuff elsewhere. But if it was even cheaper to go to Belfast once I changed my money I would definitely go there instead,” she said.