The furniture and home decor sector is facing significant challenges amid economic instability. Rising inflation, increasing operational costs, and declining consumer purchasing power have led to difficult decisions within the industry. Many businesses are struggling with high city centre rents and shifting consumer habits, forcing strategic adjustments to maintain financial stability.
Photo: Maisons du Monde.
One of the most well-known brands in the (French) sector, Maisons du Monde, has announced plans to close 40 to 50 stores by 2026. The company aims to relocate some locations to more profitable areas, particularly shopping centres, which offer lower rental costs and higher customer footfall. These closures are expected to save approximately €85 million over three years.
The company has reported a sharp decline in profits, with net earnings falling by 74% between 2022 and 2023. Factors such as rising operational expenses, increased market competition, and evolving consumer expectations have contributed to these financial difficulties. Despite this, France remains its primary market, accounting for 55% of total revenue.
The restructuring will impact between 500 and 700 employees. To mitigate job losses, the company is exploring internal retraining programmes, partnerships with employment agencies, and skill development in e-commerce and logistics.
As part of its recovery plan, Maisons du Monde is focusing on digital expansion. Initiatives include augmented reality tools for visualising furniture, improved mobile shopping experiences, and targeted social media campaigns to attract younger consumers. The company also aims to integrate online and in-store services, allowing customers to reserve products through its app.
While the upcoming period remains uncertain, the company is also investing in sustainable product lines, collaborations with local designers, and temporary pop-up stores. These measures form part of a broader effort to adapt to shifting market conditions and ensure long-term viability.
Source: www.laplasturgie.fr