Retail sales in the Netherlands in May were 2.9 percent higher than in May 2023, reports CBS. However, this trend does not extend to the interior design sector. Furniture and home furnishing stores saw a 9 percent decline in turnover compared to last May, continuing the downward trend from April, which experienced a 5.7 percent decrease. These figures highlight the challenging times for the retail sector. How are retail entrepreneurs coping? InteriorDaily spoke to several Dutch furniture entrepreneurs to gauge their experiences and sentiments during these tough times.
Corne van Waay, van Waay Interieurs: ''Right now it is quieter in the shop(s). Looking at the pattern before covid, May and June were always quieter. We quickly forget that these were three busy years for the home furnishing industry. Today's customers are serious and they want to invest. For the summer months, we certainly do expect good weeks; in the past there was always August too. (Then retired customers were back from holiday). The economic outlook is positive: low interest rates, pressure on house building.''
Göran van Tol, Commercial Director of VME Netherlands hears very different messages from different parts of the market of suppliers and retailers: ''My view: kitchen stores and sleep specialty stores are doing better than furniture stores in percentage terms compared to 2023. We notice that too. However, it has to be said that in 2023, kitchen and bedroom specialty stores have done significantly worse and therefore cannot really be compared 1-to-1 with furniture stores.
At least cumulatively, we see a slight decrease in visitors overall for our brands. But we are not dissatisfied because in most cases we manage to get a bit more out of the people who do come.
The summer is always difficult to predict. It will largely depend on how the weather manifests itself. If it stays bad, that will help sales. Conversely, if the warm weather comes, that affects the furniture market. Let it be a nice balance, so that we as can still enjoy a bit of nice weather, but also reap rewards from everyone's hard work, 'fingers crossed'.''
Kjelt van den Hazel, 'end boss' of Meubelbaas says things are going well at the furniture retailer. They are busy and growing fast!
''We are constantly seeing opportunities in the market right now. As a company, we are growing super fast and despite the growth, we see many more opportunities to exploit. Of course, it is a bit erratic at times with transport costs skyrocketing again which put enormous pressure on parts of the market. Apart from these high transport costs, we are really positive about the market at the moment and we assume this will continue for some time!''
Kees Schilder of Kex Keukens Volendam is also optimistic: ''We see the current market as a positive, challenging market in which craftsmanship, service and good value for money are the deciding factors for consumers. With our recently revamped showroom and various promotions planned, we are looking forward to the summer.''
Jan Elenbaas of DecoKay Elenbaas-Noom sees the current market as challenging, but also sees opportunities. ''Right now, we can label the market challenging, but certainly also promising. For years, we have invested a lot in our shops, which can be seen by consumers. That investment has been and continues to be made in our people, ultimately they make the difference. In this way, we have higher order values; nationwide at Decokay we also see this trend. We think we will have the right tools to surprise our customer: the critical homeowner! Decokay has a strong private label TINTZ, complemented by the A brands, it's up to the customer, what they go for.''
"Fortunately, Sohome is doing very well,'' says Sohome.nl co-owner Willem van Huis. ''Despite the very few positive sounds from the market, we still manage to grow with double digits every month. We have worked hard on our brand with a strong focus and it is paying off. Last year, for the first time since COVID, we managed to maintain sales in summer as well. Therefore, we go into this summer with great confidence.
One challenge in particular is the moderate stock position of our European suppliers. As a result, delivery times are increasing. We suspect this is due to more cautious production/purchasing because of the uncertain market, and of course the problems in container shipping.''
Hendri de Jager of bas+mar de jager from Kapelle first nuanced the word 'retail'. ''Retail is an almost all-encompassing term for sales directly to the private end-user from an online or offline shop.'' And then I already have a second power term: online versus offline. There was also another defining quantity in that explanation of retail: the private buyer.
I can't very well explain how things work in retail if it has to lump everything together. As an entrepreneur, I am more detail-oriented than retail-oriented. That one letter makes a substantial difference to be able to say anything nuanced about it.
As an entrepreneur moving into the home furnishing industry and then also as an SME offering mixed product groups in a modern higher segment, things are already getting small. What I mean by small is that I can only give my opinion on how things are going about a small part of the big interior design cake. When I then assess the sentiment in that narrow segment, I experience it as a constant fever pitch.
One month, we are pulling out order sizes in amount and number that make us feel like heaven, only to have to scrape and rake orders as if our lives depended on it a period after that. We read weekly about mergers, bankruptcies, moratoriums and reorganisations. Not only among fellow entrepreneurs, but most certainly in the other parts of the business chain.
Is there a cleanse going on? Were there too many shops after all? Has the consumer shifted her buying behaviour to the big chains for less money to keep a little more control over their savings? As a business owner, who still owns premises without a mortgage or as a renting detailer, can you still keep everything? Renewing sustainability no longer works if your cash flow staggers and refuses. You don't want to find good staff if you think that recovery of turnover with rising costs is not permanent or at least improving. Will an entrepreneur still recoup his old age? Are we as a business column going into some kind of collective panic attack?
Reading the reports in the various media, you do get that impression. The fact remains that consumers will continue to decide in which shop they spend their money and to what extent. If I keep doing what I always did, I will get what I always got. Satisfied customers and customers who know what to expect. Detail more than retail. Indeed, I continue to struggle with that one letter difference. It's not just about commerce in my narrow world. Are we stepping on that? Not if it's up to me.''
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