IKEA Israel prices not so cheap / News / The Foreigner

IKEA Israel prices not so cheap. Buying identical items in the Middle East costs almost twice as much compared to expensive Norway. Israel business journal Globes found this was the case with IKEA when looking into the matter. Yoav Bar, an Israeli who has been living in Norway for the past eight years, discovered the differential in prices when he and his daughter visited one of the Swedish interior giant’s shops in Israel two months ago.

ikea, israel



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IKEA Israel prices not so cheap

Published on Wednesday, 6th May, 2015 at 20:14 under the news category, by Sarah Bostock and Michael Sandelson   .

Buying identical items in the Middle East costs almost twice as much compared to expensive Norway.

IKEA sign
IKEA sign
Photo: Philip Halling/CC Licence


Israel business journal Globes found this was the case with IKEA when looking into the matter.

Yoav Bar, an Israeli who has been living in Norway for the past eight years, discovered the differential in prices when he and his daughter visited one of the Swedish interior giant’s shops in Israel two months ago.

“I looked at how much what I bought in Norway costs here. Like a sofa I had bought a month earlier, for example. I thought maybe I had misremembered the price, but then I went into the Norwegian website and I saw that my memory was just fine,” Mr Bar told the publication.

His experience was not unique. This was confirmed after the journal’s staff had investigated prices using randomly selected categories.

One example given was the price of a TRYSIL double bed. A consumer in Norway would pay about NOK 777 including 25 per cent VAT (NIS 403 at today’s ROE). This would be NOK 732 (NIS 380) if adjusted to reflect Israel’s 18 per cent VAT level

A customer in Israel would pay about NOK 1,796 (NIS 895) for the same item. This is 2.22 times more (or 2.35 including the difference in VAT).

According to Globes, a double bed made of wood veneer with a storage box would cost 54 per cent more in Israel – roughly NOK 2,488 (NIS 1,290) in Norway, and NOK 3,828 (NIS 1,985) in Israel.

The publication also discovered that a crib in Norway would cost will pay about NOK 658 (NIS 342) – NOK 621 (NIS 323 factoring VAT). This same item would cost double in Israel, equivalent to NOK 1,241 (NIS 645).

A play kitchen for young children costs about NOK 487 (NIS 253) in Norway, and NOK 760 (NIS 395) in Israel – some 56 per cent more.

Lights and home textiles were also listed as some items being more expensive in Israel.

IKEA Israel announced in a press release eight months ago that it would be reducing prices across the board.

Shuky Koblenz, CEO of IKEA Israel, also said that the prices of sofas and sofa beds would be reduced by 7 per cent.

“Beginning in 2003, IKEA made sure to reduce prices by a total of 17 per cent, and continues to actively reduce prices. Moreover, IKEA is the only company in Israel that commits to fixed prices throughout an entire year, while offering products at attractive and worthwhile prices,” the company has stated.

Explaining some of what she says are many reasons for price differences, IKEA Norway communications consultant Stine Odland tells The Foreigner that “the market varies from country to country and prices are adjusted accordingly.”

“IKEA globally recommends selling prices and then each country will adjust this according to currency differences, needs in the market, freight, logistics, inventory, local regulations, and other operational expenses.”

The needs of the local market are another factor, argues Ms Odland.

“We at IKEA Norway might choose to lower the price of an item when we see that the product has market potential and popularity,” she concludes.



Published on Wednesday, 6th May, 2015 at 20:14 under the news category, by Sarah Bostock and Michael Sandelson   .

This post has the following tags: ikea, israel.





  
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