Maisons du Monde intends to close or transfer 40 to 50 stores out of a total of 340 by 2026.
Furniture and decorative items distributor Maison du Monde announced in a press release on Tuesday, March 12 that it intends to take over “40 to 50 store closures or transfers” By 2026, out of 340 managed by the group, reportsAFP.
The brand, which has announced a 74% lower net profit in 2023 than in 2022, at 8.8 million euros, also wants to move forward. “About 30% under network affiliation or franchise” By 2026.
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“Difficult Context”
Maisons du Monde, which has 55% of its activity in France, saw its sales fall by 9.3% to 1.13 billion euros in 2023. “In a difficult context for the home and decoration sector, accentuated by unfavorable macroeconomic factors”According to the press release, which cites “Geopolitical Uncertainties”l’“Unprecedented Inflation” And “Decline in consumer confidence”.
In this regard, the group, whose head office is located in Vertou (Loire-Atlantique), has identified around fifty stores whose profitability needs to be improved. Solutions to achieve this include rent renegotiation, sale to affiliates or relocation, for example from the city center to an area of commercial activity.
85 million euros in savings over three years
Fixed closure will thus affect only one “small” Part of the park, assured AFP Christophe Lepotre, executive director of the group’s operations, who is also considering other points of sale.
While Maisons du Monde had already experienced a halving of its net profit in 2022, the distributor decided to put “Emphasis on Simplification and Fiscal Discipline”According to the brand’s general manager, Francois-Melchior de Polignac, as quoted in the press release.
The group wants to achieve a total of 85 million euros in savings over three years. To do this, in addition to store closures and transfers, it plans to reduce its stock by a month and halve the number of its suppliers.
