2024-03-17 10:10:00
This large decoration store brand, very popular with the French, plans to close no less than 50 of its stores in the country.
If you are a fan of decoration and furnishings, you surely know this large decoration store. One of the largest French decoration brands is currently going through a bad patch. It plans to close 50 of its 340 stores in France. But does the decoration store plan a permanent or temporary closure for the stores concerned?
The French’s favorite decoration store is going through a very bad time
The decoration and home sector, like many other areas, suffers inflation head on. Remember, at the end of 2023, the Habitat brand had to close its doors following judicial liquidation. It is now the turn of another popular decoration store brand in France to find itself threatened.
Launched in 1996, the Maisons du Monde decoration store quickly climbed the ranks. The brand quickly made a place of choice in the hearts of the French. It has also conquered other countries such as Belgium, Italy and Germany.
It is then difficult to believe that the reign of this decoration store might come to an end. Yet, Maisons du Monde is also suffering the consequences of this crisis unending.
Raw materials are becoming more and more expensive and consumers are finding themselves struggling with inflation. All this without taking into account the impacts of Covid-19, which are still present, as well as persistent geopolitical uncertainties.
The effects of the crisis are felt in the decoration store’s figures. In 2023, Maisons du Monde observed a drop of 9.3% in their sales. Its net profit is also down 74%, which is equivalent to the astronomical sum of 8.8 million euros.
Faced with all these insecurities, the decoration store wants to react quickly. And the closure of around fifty stores in France might be considered.
The upcoming closure of 50 stores
55% of the activities of the Maisons du Monde decoration store are found in France. It is therefore obvious that the first measures that the brand will adopt to redress its situation will take place here. Rumor has it thataround fifty physical stores will close their doors shortly.
The decoration store identifies nearly 50 stores in France whose profitability must improve as quickly as possible. Of course, there is no question of definitive closure yet. The brand plans to renegotiate rents or transfer stores to other premises.
There will thus be more transfer than closure, at first glance. Good news for regulars at Maisons du Monde stores.
However, the company’s executive operating director confirms that some stores will indeed close. However, he insists this will only affect a very small part of the park.
You should know that the decoration store has already undergone a 50% reduction in net profit 2 years ago. The brand closed 15 stores and transferred 5 others to affiliates in 2023.
Its decision to completely review its operating strategy is increasingly confirmed. Maisons du Monde aims to achieve a saving of 85 million euros by 2026.
In addition to the closure of some stores and the relocation of certain stores, other measures will be adopted. The decoration store will reduce its stocks as well as the number of its suppliers. Therefore, the closure of 50 stores in France has not yet been confirmed.
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