Ikea Cuts Price of U.S. Shelves as Outlook Dims

[marmar]

(Bloomberg) Ikea, the world’s biggest home- furnishings retailer, has slashed the price of its Billy bookshelves in the U.S. by 17 percent as unemployment and a sluggish housing market weigh on consumer confidence.

U.S. outlets now sell the signature bookshelf for $49.99, compared with the $59.99 listed a year ago, according to data compiled by Bloomberg News from the Netherlands-based company’s website. Based on dollar prices, the average cost of the item in 39 countries rose 13 percent to $62.49 in that period.

With unemployment above 9 percent and housing starts about 73 percent below a 2006 peak, confidence among American consumers is at the lowest in more than two years. Payrolls growth stalled last month, and President Barack Obama proposed a $447 billion jobs plan last week to boost growth.

“Housing is not participating in the recovery, so consumer spending related to housing is not growing,” James Shugg, a senior economist at Westpac Banking Corp. in London, said in a telephone interview. “Given that furniture’s been the worst category in a pretty sick retail sector, it doesn’t surprise me that you’ve seen pretty hefty price reductions.” ............(more)

The complete piece is at: http://www.bloomberg.com/news/2011-09-11/ikea-cuts-price-of-u-s-shelves-as-outlook-dims.html

[trumad]

1. Or maybe your furniture sucks.

[SoCalDem]

2. and with fewer young people striking out on their own,

the "entry-level" flatpack furniture market is suffering

[Tesha]

3. No, it doesn't although I realize it's trés chic to say that.

We've been very satisfied with our IKEA purchases
through the years.

Tesha

[laundry_queen]

7. Same here.

Most of my furniture was bought at IKEA. It not only is one of the few places that has furniture in my price range but I prefer their style. And while IKEA may have its faults, I still think it's better than buying stuff from Walmart, which is pretty much the only other place that has furniture in my price range.

[snooper2]

10. Does all of it come pre-named for you?

"Billy bookshelves"

:rofl:

Tommy tables? Suzy Sleepers?

[Tesha]

11. We don't have any "Billy".

We do have a lot of Grundtal, Effectiv, Akurum, Dave,
Husvik, Kvart, Omar, and many others whose names I can't
recall.

IKEA products may not be as fancy as "name brand"
Danish Modern furniture and accessories, but their
quality is sufficiently high and their price is *FAR MORE*
accessible to the average person.

Out house is a mix of "the real deal" and IKEA, and I
would challenge anyone to pick out all the IKEA stuff;
unless you really know the product lines, I would bet
you won't be able to do it!

Tesha

[snooper2]

13. I don't buy anything that is MDF, all junk...If you can't afford new, buy used

For example, I just jumped on Craigslist, and here's the top ad-

Table/Chairs Orginally $2000 - $295 (Frisco)




http://dallas.craigslist.org/dal/fuo/2594335176.html

[Tesha]

14. That's fine if you like that style; our house is "modern" through and through. (NT)

[WinkyDink]

20. I have solid cherry Queen Anne in my dining room; "Billy" is quite fine for my upstairs, TYVM.

[HappyMe]

6. We all can't afford Ethan Allen. nt

[Codeine]

24. I actually really like Ikea's stuff.

I have a ton of it in my place -- it's quite affordable, surprisingly durable (I have an Ikea desk chair I bought for $17 almost twenty years ago that I still use every day), and good-looking if modern is your thing. YYMV.

[Tesha]

4. IKEA is also postponing U.S. expansion.

Somerville, MA, was going to be the site of an IKEA
store, but Somerville dicked around with the permitting
process for so long that IKEA built another store in
Stoughton, MA. Now the Somerville site sits empty
(cleared but barren) and IKEA has no immediate plans
to go ahead with the project; the economy just won't
support it.

The end of an empire is never pretty.

Tesha

[Javaman]

15. not pretty at all...

if more people got clued in, maybe would could at least slow down the inevitable for a softer landing.

but alas...

[Starry Messenger]

5. Odd, I was looking at their catalog this month and thinking things had gotten more expensive.

I'm back to thrifting.

[Tesha]

12. They tried to go up-market with the Stockholm series, but I don't think that has "caught".

The old standards are mostly all still there, though.

Tesha

[xchrom]

8. I hate flat pack, Allen wrench furniture. Hate it. Nt

[trumad]

9. its way overpriced as is....

And its cheap looking.

[marions ghost]

18. you can obviously afford better...

I have several IKEA items which I've used for many years. Always been a good value for the price. What's wrong with that?

IKEA is great, but the middle class market is declining.

[hedgehog]

19. I was jsut thinking that - they can drop the price 20% and still make a profit.

[otohara]

16. They Just Opened in CO - Crazy Busy

they have employees directing traffic blocks away. It's a butt ugly building - some of their stuff is pretty cool, like their sinks.

[WinkyDink]

17. I have an entire room lined with "Billy" bookcases; they've lasted over 20 years in great shape.

In a couple other rooms, as well!

[marions ghost]

22. I'm with you

:thumbsup: I have several IKEA shelving units also. Have a nice media center that yes--was put together with a hex key...the shame...:eyes:

What if one doesn't want oversized, increasingly cheap & overpriced new furniture? And what if one doesn't like antiques or vintage furniture? What if you like plain, simple, and modern ?

:shrug:

[snooper2]

23. The money you spent on those, you could have bought a table saw and router

rip your wood, make some dado joints, color with your favorite stain

last forever, and you essentially get a free table saw and router out of the deal :P


That's how you justify tools by the way. Honey, I can buy a bigger compressor and an air chisel and bust this tile out for cheaper than a contractor, and still have the tools when I'm done :)

[Codeine]

25. Yep. Mine are packed with more books and games than I care to admit

and not a single one of them has ever bent or warped -- solid as hell and they cost almost nothing.

[Generic Other]

21. I don't know if I own any IKEA

since I buy everything used. I go for old oak. Just bought a set of drawers for 10 bucks. Grand Rapids oak.

I just am a bargain freak.

IKEA has nice modern stuff. It's just that I am too cheap for new.

[sufrommich]

26. They've been lowering prices in their Detroit area store

for 2 years now. I love Ikea stuff. It is usually very busy though, I don't even try to go there on weekends.