Ikea Confronted Over Canadian-U.S. Price Differences

“We’re mad as hell and we’re not going to take it anymore.” That’s not just the famous line from the movie “Network”. It’s the collective sound of Canadians who have been on the wrong side of the dollar exchange for more than three decades.

Consumers have begun to vote with their feet, taking their now more valuable dollars with them to the U.S. in the hunt for bargains. And even those not heading stateside are demanding explanations about the price differentials from merchants at home.

All of which brings us to Swedish furniture giant Ikea and its branches on both sides of the border. One CityNews viewer actually went to the trouble of comparing specific items from the chain’s stores in the U.S. with the ones here – and then wrote us about her discoveries.

Some examples? A couch that costs $900 down south is $1,400 here – a $500 difference. A slipcover that sells for $100 over there is $200 in Canada. What does the retailer say about the disparity? It’s all a case of which products you’re looking at.

“I think it’s important to note that 20 per cent of our best selling products are actually on par or less expensive than in the U.S.,” notes spokesperson Madeleine Lowenborg-Frick, pointing to another product on display in one of the company’s many GTA stores. “This dining table, for example, retails for $299 here and $345 in the States.” So it’s impossible to make generalities.

But what about those other differences? “Our suppliers have locked us into prices 12 to 18 months ahead of time,” Lowenborg-Frick explains. “So as the Canadian dollar gains strength, we actually don’t benefit.” It’s the same story with many others, who blame distributors, manufacturers and levies for the ongoing differences. Many have tried to launch incentives to make a play for your buck. But at least one expert doesn’t buy the explanation.

“There’s no reason why this Christmas we shouldn’t have the same prices in Canada as in the United States,” maintains retail analyst John Winter. “It’s only that some retailers want to maintain the fiction that costs are higher here.”

Whatever happens, you can expect to come out at least a partial winner. Some believe Canadian stores will be forced to institute Boxing Day-like sales before Christmas in order to keep your money from crossing the border. And with the strength of the buck, the days of you docilely paying the amount on the price tag may be gone. But many consumers insist that after so many years of paying that higher price, it won’t soon be forgotten.