Part 6/16:
This financial squeeze extends beyond corporations to consumers, whose spending patterns have shifted significantly. A 58% of bankruptcies mention reduced demand or increased competition driven by changing consumer preferences. Examples include online education company 2U and EV battery maker Northvolt, both seeing drastically reduced interest in their products post-pandemic.
Traditional retail sectors like homegoods and furniture—once thriving during pandemic-induced lockdowns—are experiencing major declines because these are discretionary expenses, often delayed or foregone when household budgets tighten. As families prioritize essentials over luxuries, companies heavily reliant on discretionary spending face insurmountable challenges.