The giant decoration store brand, very popular in France, plans to close less than 50 of its stores in the country.
If you are a fan of decoration and furnishings, you definitely know this huge decoration store. One of the biggest French decoration brands is currently going through a bad patch. It plans to close 50 of its 340 stores in France. But the decoration store plans Permanent or temporary closure for related stores?
The French’s favorite decoration store is going through a tough time
The decoration and home sector, like many other sectors, Inflation takes over. Remember, at the end of 2023, the Habitat brand had to close its doors following a judicial liquidation. Now it’s the turn of another popular decoration store brand in France to put itself at risk.
Started in 1996, Maisons du Monde Decoration Store Quickly rose through the ranks. The brand quickly made a place of choice in the hearts of the French. It has also conquered other countries like Belgium, Italy and Germany.
It’s hard to believe then that this decoration store’s reign could come to an end. however, Maisons du Monde are also suffering the consequences of this crisis infinite
Raw materials are becoming more and more expensive and consumers are struggling against inflation. All this without considering the effects of Covid-19, which are still present, as well as the continuing geopolitical uncertainties.
The impact of the crisis is felt in decoration store figures. In 2023, Maisons du Monde observed Their sales fell by 9.3%. Its net profit is also down 74%, which equates to an astronomical sum of 8.8 million euros.
Faced with all these insecurities, the decoration store wants to react quickly. And About fifty stores closed in France can be counted.
Next 50 stores will be closed
55% of Maisons du Monde decoration store activities are found in France. So it’s only natural that the first steps the brand will take to remedy its situation will be here. Rumor has itAbout fifty physical stores will close their doors Shortly
The decoration store identifies around 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 the rent or transfer the store to another location.
Thus at first glance, there would be more transfer than closure. Good news for regulars at Maisons du Monde stores.
However, the executive operating director of the company confirms it Some stores will actually close. However, he insists that this will affect a very small portion of the park.
You should know that the decoration store has already passed 50% reduction in net profit 2 years ago. The brand closed 15 stores in 2023 and transferred 5 others to affiliates.
Its decision to completely review its operating strategy is increasingly being confirmed. Aiming to achieve Maisons du Monde Savings of 85 million euros by 2026.
Apart from closure of some stores and relocation of some stores, other measures will also 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.
