Something I was struck by on my recent Ikea trip was the serious price cuts: A formerly $699 sofa was going for $499, a bed that used to be $299 was $100 cheaper, and they had smaller Expedit units for under $40.
A recent AP interview with Ikea CEO Mikael Ohlsson (who studied ID, by the way) sheds some light on why: Ohlsson's responding to the crap economy, as well as taking note of new trends the recession has started, and responding with appropriate furniture solutions. An example of that latter point: As there are now more people living together under one roof to save cash, Ikea now sells "more double sinks for bathrooms and more sofa beds with storage underneath."
Multigenerational living is becoming bigger. In the factory down in Danville [Virginia], we are producing a sofa bed with large storage. It's $599. It's a huge success in the U.S. This is probably not what you normally put in the living room if you don't live in Manhattan. But this is what people are putting in their living rooms.