But the bleak outlook could be a boon for Ikea, a budget furniture seller that appeals to people who need to furnish small spaces, can’t spend much and don’t expect products to last very long. With “people maybe not being able to get into that dream house right now, whether for affordability or availability … they’re looking for solutions that might not be as permanent,” said Michael Brown, partner in the consulting firm Kearney’s consumer products and retail practice.
“I don’t think that this is what [Ikea] would have picked in an ideal state,” said Sucharita Kodali, principal analyst at Forrester, a research and consulting firm, referring to the difficult housing market and consumers slashing spending in the space. But, “they’re at the low end, and they may be able to pick up some share from people who are trading down.” At a place like Ikea, people may now be willing to trade their time and their energy for the lower price, noted Zimmermann.
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