LEGO is the latest victim of the falling pound as it confirmed prices will increase by 5 per cent next year. A letter which was shared on social media earlier this week, from a top boss at the toy retailer, revealed that prices will increase from January 1 2017. The price of Lego might increase by 5 per cent in January It stated that the hike is a “direct result of the continued devaluing of the UK pound” and went on to say that the company may be forced to put up prices again in the “event of further negative trend”. It means that a Star Wars Lego Death Star set currently prices at £399 will go up by £20 next year. While the Doctor Who Lego set will rise by £2.49 from £49.99 to £52.48. Lego prices in the UK going up by 5% as of January. — Robb Lewis (@rmlewisuk) December 10, 2016 The sender, Fiona Wright, is the vice president of Lego UK, according to LinkedIn. She is responsible for sales in the UK and Ireland and has worked for the toy company since 2000.
The letter also said that she wishes the retailers the best for the next two months of Christmas trading – suggesting it was sent in November. NO BRUSSELS FOR ME THIS YEAR! The post has been shared on Twitter as well as social news aggregation website, Reddit. Details of the recipient have been withheld and there is no indication of where it originated from. However, a spokesperson from Lego said: “As communicated to our retailers, The LEGO Group will raise prices in the UK, due to currency fluctuations”. The value of the pound has plummeted since the vote to leave the European Union. At its worst point it was down 20 per cent against the Euro and the Dollar. This has made it more expensive for manufacturers to import raw materials and goods, with many now passing the increase in costs on to customers. Lego replica of Big Ben in the entrance of the new flagship Lego store in Leicester Square Lego is the latest in a growing line of retailers and manufacturers to push up costs.
Tesco pulled hundreds of Unilever products from its shelves in October – including Marmite and Pot Noodles – because of a row over prices. The consumer goods giant wanted to push up prices by 10 per cent. The spat was resolved between closed doors but it was blamed on currency fluctuations because of the Brexit vote. LEGOs new top boss Bali Padda is pictured at a news conference in Copenhagen earlier this month Toblerone fans were outraged with the product makers increased the gaps between triangles to reduce the amount of chocolate in bars but kept the prices the same. While Galaxy Counters and Malteaser sharing bags have also got smaller and makers Mars blamed the rising cost of raw materials. We pay for your stories! Do you have a story for The Sun Online news team? Email us at tips@the-sun.co.uk or call 0207 782 4368Britons will have to pay 5 per cent more for their Lego sets, as the Danish company raises prices in response to the pound's decline in the wake of the UK’s decision to leave the EU.
Lego is the latest in a line of retailers to raise its prices in the UK to deal with the collapse in the value of the pound. Economists expect the depreciation of trade-weighted sterling since the 23 June referendum to feed through to higher prices in the shops over the next two years, which will, in turn, reduce real household disposable incomes and help slow the economy sharply in 2017. Prices of Lego sets could increase starting from January 1 next year, according to a letter by Fiona Wright, the general manager and vice president of Lego. The letter, shared on Twitter as well as social news aggregation website Reddit, says that the increase in prices is a “direct result of the continued devaluing of the UK pound”, it adds that Lego will try to “minimise” the consumer sales impact. Details of the recipient of the letter have been withheld and there is no indication of where the document initially originated from. However, in a statement sent to The Independent, a spokesperson for Lego said: “As communicated to our retailers, The Lego Group will raise prices in the UK, due to currency fluctuations”.
Inflation has hit its highest level in more than two years thanks to the sharp depreciation of the pound since the Brexit vote, according to the latest prices report from the Office for National Statistics released on Tuesday. "It looks inevitable that consumer purchasing power will deteriorate markedly over the coming months as inflation moves appreciably higher and earnings growth is limited," said Howard Archer of IHS Global Insight. The pound has fallen by around 16 per cent against the US dollar since Britain voted to leave the EU in June. This already means that any goods brought in from outside the UK will be more expensive. Dave Lewis, the chief executive of Tesco, has previously warned its international suppliers against using the plummeting pound as an excuse for illegitimate price increases. In October, Tesco took brands such as Marmite, Ben & Jerry’s and PG Tips off its shelves after consumer goods giant Unilever raised their prices by 10 per cent to compensate for the weaker pound.
The dispute was resolved after Unilever abandoned its plans.Danish toy manufacturer says it is not ruling out further increases if sterling does not recover from post-Brexit vote plunge Lego sent a letter to UK toy retailers explaining that the price hike is a ‘direct result of the continued devaluing of the UK pound’. Lego is to raise its prices in Britain by 5% next year as it becomes the latest manufacturer to respond to the plunging pound after the UK voted to leave the EU. The Danish firm confirmed it had decided to to hike the prices of its playsets, bricks and mini-figures in the UK owing to “currency fluctuations”, while not ruling out further increases if sterling does not recover. A letter shared on social media this week from a senior Lego executive to UK toy retailers revealed that prices would increase across the board from 1 January. Signed by Lego UK and Ireland’s general manager and vice-president, Fiona Wright, it explained that the hike was a “direct result of the continued devaluing of the UK pound”.
The letter went on to warn that the company might be forced to put up prices again in the “event of further negative trend”. It means that a Star Wars Lego Death Star set, currently priced at £399, will go up by £20 next year, while a Doctor Who Lego will rise by £2.49 to £52.48. A spokesperson for the company said: “As communicated to our retailers, The Lego Group will raise prices in the UK, due to currency fluctuations.” Lego said that while it was raising the prices it charged retailers to stock its products, it was up to stores to decide if they passed on the increase to customers or absorbed it themselves. Its Star Wars Rebel U-Wing Fighter playset (which would go up to £73.50 next year) is among UK’s best-selling toys, according to Toy Retailers Association. The latest manufacture to signal rising costs, Lego is privately owned and based in Billund, Denmark. It is controlled by the founding Kristensen family, which has a 75% stake. The company recently confirmed the appointment of a British chief executive and opened its biggest flagship store in Leicester Square, London.