It’s Officially a Recession When No One is Buying that MALM Bedroom Set
Economists and financial experts haven’t officially called the U.S. economy’s problems a recession just yet, because they are waiting for the data to show we’ve had two straight quarters of negative growth. But if you want definitive proof, look no further: Ikea, the world’s largest furniture retailer, is getting stung by slower sales due to the housing downturn, the Financial Times says.
If consumers are cutting back on even cheap furniture, that’s definitely a sign that things are truly bad. But Ikea isn’t too worried. Its customer base will pick once people who never deigned to shop at Ikea begin trading down to its particle-board and veneer furniture as their wallets get squeezed even more by the credit crunch, Chief Executive Anders Dahlvig says.
If he’s right, look for a run on that EKTORP sofa sometime soon.