Fridge-freezer prices up by 30%, says retail bosson April 19, 2022 at 3:27 pm

The prices of fridges, freezers and dishwashers are up by a third since last year and set to climb higher, the boss of a white goods retailer says.

Nick Glynne from Buy It Direct, which owns Appliances Direct, blamed Covid lockdowns in China, shortages of materials and sky-high shipping costs.

Amdea, a UK appliance maker trade association, said wholesale prices had risen by nine per cent in three months.

Retailers AO World and Currys also said their prices had been impacted.

It comes as the UK’s cost of living rises at its fastest rate since 1992, with petrol and energy costs soaring.

Mr Glynne said Appliances Direct, which he says has an 8% share of the UK appliance market, was facing much higher wholesale costs which it was forced to pass on to customers.

Shoppers are paying about 30% more than a year ago for fridges, range cookers and dishwashers, he told BBC Radio 4’s Today programme.

“If you look at a large American fridge freezer that we bring in over from China, pre-Covid that cost around £12 to ship, £12 door-to-door from a factory in northern China across to the UK and that would take six months lead time,” he said.

“Now we’re looking at 12-14 months lead time and the price for freight alone has gone up to around £80 for that unit. So a £299 fridge has now got a £70 increase in cost, which has a knock on effect to the consumer.”

In November, rival electrical goods retailer AO World said that its prices had climbed by 10-12% due to supply chain pressures.

A spokesperson told the BBC on Tuesday: “There are inflationary pressures in the market such as shipping costs, material input prices and consumer price inflation which inevitably affects the price of electrical products. We don’t expect that to change through the rest of this year.”

Lara Brittain, white goods category director at Currys said: “We are seeing increased costs with logistics being the main issue, however the availability of raw materials and components is also playing a part.

“We work closely with our supplier partners to ensure we are giving our customers the best value, but unfortunately there is some impact to product pricing.”

Mr Glynne said appliance prices are likely to rise further this year as retailers are still selling stock bought last year.

“Our replacement stock is getting more expensive,” he told the BBC.

“It is going to get worse this year rather than get better. Consumers may think they’ll get bargain by waiting but they won’t.”

He said that Buy It Direct, which also owns Laptops Direct and Furniture 123, had laid off 150 of its 1,000 staff this year in “anticipation of a slowdown” in consumer spending.

Mr Glynne’s warnings follow research in February from price comparison site Price Runner, which found that prices of white goods and gadgets had soared by nearly 50% in just two years.

It said the average price of a washing machine was up by 46%, or £152, between January 2020 and February 2022, and a tumble dryer by £70.

But the research, which looked at thousands of goods, found some products such as dishwashers had fallen slightly.

Most bulky white goods are made in China, but Mr Glynne said recent strict lockdowns in cities like Shanghai had hit factories, meaning it was harder for the UK to source products.

He added that manufacturers also faced worsening shortages of commodities such as electrical steel, in part because of the Ukraine war, while freight shipping costs remained high due to the pandemic.

The UK’s cost of living climbed by 7% in the 12 months to March, up from 6.2% in February, official figures show.

On top of high fuel and energy prices, consumers are paying much more for food, furniture and eating out.

On Sunday, the chairman of Made.com said the online furniture retailer had also been forced to put up its prices. Its customers are also spending less amid concerns about inflation and Ukraine.

“The customer has definitely held back in the short term financially,” Susanne Given said.

She added that the economic backdrop meant that, however big a customer’s budget, they were still hesitant about spending.

On Wednesday, the Office for National statistics revealed that furniture and furnishing prices jumped by 16.8% in the 12 months to March.