Despite facing challenges such as declining new construction, high interest rates, inflation, and a general reluctance to buy, the furniture trade industry has seen some success with companies like XXXLutz. This company appears to be relatively unaffected by these difficulties and has even captured some of the released sales from bankruptcies such as Kika/Leiner. In response to the crisis, XXXLutz has adapted by offering more affordable and smaller furniture options that cater to the growing demand for rental apartments. The company has also engaged in an aggressive price war, advertising heavily and offering various sales lines both in-store and online.
Despite the challenges in the industry, XXXLutz has managed to achieve a small profit in Austria. The company has grown significantly and is now the second-largest furniture retailer in the world after Ikea. To expand its reach and market share, XXXLutz has made strategic investments in other furniture retailers such as Poco, Conforama, and Lipo. Additionally, the company recently made a significant acquisition with Home24 that allowed it to integrate household goods chain Butlers into its branches in Germany and Austria.
Online sales have become increasingly important for furniture retailers like XXXLutz, making up a significant percentage of total sales. Despite this trend, XXXLutz continues to expand with new locations planned in Vienna and Linz. This expansion strategy is part of their overall growth plan to position themselves as major players in the furniture industry.
In conclusion, while the furniture trade industry faces challenges such as declining new construction and high interest rates, companies like XXXLutz have been able to adapt by offering smaller and more affordable options that cater to rental apartments. With aggressive pricing strategies and strategic investments in other retailers, this second-largest furniture retailer continues to grow its reach and market share while expanding into new locations.
