New Round of Price Hikes at Ashley

CEO points to ‘persistent supply-chain challenges’

By Alan Wolf, YSN

Ashley Furniture will implement another round of price increases and surcharges next month in response to rising across-the-board costs.

The price hikes were reported by industry news site Home News Now, which obtained a letter to dealers from Ashley CEO Todd Wanek announcing the adjustments. The increases will impact domestic stationary and motion upholstery, certain imported upholstery products, and select case goods, RTA, bedding, outdoor, and accessory items, Wanek indicated, although the price adjustments will be smaller for participants in the company’s container direct program.

In addition, Ashley is raising freight pricing for all customers and is adding a fuel surcharge to all delivered dealers.

The new prices will go into effect on all new orders on or after March 13, and on all unfulfilled orders invoiced as of April 10, the letter stated.

Wanek pointed to “persistent supply-chain challenges” stemming from the pandemic that are dramatically driving up the cost of ocean freight, labor, finished goods, components, and raw materials. However, dealers can still find good deals on the company’s domestically manufactured goods, he told Home News Now, citing promotional bedroom sets, comprised of a dresser, mirror and bed, that are priced to retail for $999 or less.

Ashley has committed $1 billion to ramp up U.S. production with new or expanded factories, including facilities in Wisconsin, Arizona, Pennsylvania.

“We encourage retailers to look at our domestic assortment and review the merchandising of their stores to make sure they have a proper assortment,” Wanek told the news site.

Home News Now noted that the price hikes are the latest in a series of increases imposed by Ashley since the pandemic began more than two years ago, although it is certainly not alone among furniture and bedding vendors in passing along higher costs.

Hat tip to Home News Now.