The recent bankruptcy of a prominent Austrian furniture chain has left Austria with only two major players: the XXXLutz Group (Mömax, Möbelix) and Ikea. This consolidation could lead to higher prices for consumers due to reduced competition, warned Natalie Harsdorf, General Director of the Austrian Federal Competition Authority (BWB).
The company in question is furniture chain Kika/Leiner. Harsdorf expressed concern about the consequences of market concentration, noting that reduced competition often harms consumers. Ideally, the departure of a market player should attract new entrants, but barriers such as the need for scale and robust supply chains hinder new competitors in the static furniture retail sector.
Photo: Dreamstime.
The coming weeks will determine whether Kika/Leiner can recover or find an investor, potentially an international retailer seeking to enter the Austrian market. Following a prior insolvency in 2023, the chain closed 23 of its 40 locations, and the XXXLutz Group has since acquired 11 of the former properties.
The BWB is examining whether these acquisitions should have been reported under competition laws and is monitoring for potential abuse of market dominance. Currently, XXXLutz holds 34% of Austria's furniture market, followed by Ikea with 19% and Kika/Leiner with 13%, according to RegioData.
These developments underscore the growing market concentration and the potential challenges it poses for Austrian consumers.
According to market researcher RegioData, XXXLutz already controls 34% of the Austrian furniture market, followed by Ikea with 19% and Kika/Leiner with 13%.
As part of its response to the crisis, Ikea has offered vouchers to Kika/Leiner customers who made deposits. The market dynamics are shifting, and the coming weeks will be critical in determining the impact on both consumers and competition.
Source: www.nachrichten.at