The furniture industry in Germany is undergoing significant changes, with the Austrian company XXXLutz leading the charge. Known for its massive expansion, XXXLutz is in the process of acquiring the German Porta Group, subject to antitrust approval. This marks another step in the company's drive to become the dominant player in the German market, following previous acquisitions of Poco and Home24.
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However, the market is facing challenges. Sales of German furniture manufacturers fell by 7.6% between January and October 2024, as many consumers tighten their spending amidst high prices and economic uncertainty. The construction crisis, resulting in fewer new apartments, has also reduced the demand for new furniture.
As retailers grow larger and consolidate, manufacturers are under increasing pressure to meet the demands of big chains. According to Christine Scharrenbroch of the German Furniture Industry Association, 'manufacturers are forced to make ever greater concessions.' Despite this, lower prices for consumers are unlikely, with larger retailers continuing to increase their profit margins.
In a separate move, online furniture giant Wayfair announced it would withdraw from Germany and Austria after 15 years in the market.
Source: www.morgenpost.de