IKEA: The current consumption environment is more like that after the 2008 financial crisis, with consumers’ wallets shrinking significantly.

The US economy currently shows signs of stable consumer confidence and a slightly warming labor market, and Yellen has repeatedly stated that the economy is gradually moving towards a "soft landing". However, Jasper Brodin, the CEO of Ingka Group, the parent company of the multinational home goods retailer IKEA, recently stated that compared to the past when product prices were significantly raised due to supply chain disruptions during the COVID-19 pandemic, IKEA has spent 20 billion euros last year to lower prices on its most popular products. Although IKEA has discounted its products and seen an increase in sales, according to a report by the Financial Times, IKEA's revenue has actually declined by 5.3% to 450 billion euros in the year ending August, the first decline since 2020. Brodin explained that the previous high inflation rate and high interest rates have put pressure on people's wallets, and with the recovery of the supply chain, the decline in transportation costs and raw material prices, they had to lower prices on their products, even back to pre-pandemic levels. It is worth noting that Brodin also said that the current consumption pattern has begun to change. Although inflation is currently easing and Europe and the US have started to cut interest rates, consumers still have less money in their wallets, and they have started to cut spending, mainly buying based on demand rather than worshiping various DIY products. In their actual observations, IKEA believes that the current economy is not prosperous, but more like the days after the 2008 economic recession, and it will take some time for people to open their wallets again, even if interest rates start to decline and inflation cools. To meet consumer demand, IKEA has recently even launched a second-hand home goods trading platform, allowing consumers to buy and sell their own second-hand home goods, which seems to be a change to address the lack of consumer purchasing power.