The furniture trade is currently facing significant challenges such as declining new construction, high interest rates, inflation, and a general reluctance to buy. These difficulties have led to bankruptcies and dwindling sales in the industry. However, despite these obstacles, furniture company XXXLutz appears to be thriving. In response to the crisis, the company has adapted by offering more affordable and smaller furniture options. With declining new buildings but rising rents, there is still a need for living space. This has led to a demand for smaller and cheaper furniture items, particularly for rental apartments.
XXXLutz has engaged in an aggressive price war, advertising heavily and offering a variety of 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, with sales of around 6 billion euros and 27,000 employees, has grown to become the second-largest furniture retailer in the world after Ikea. The company has made strategic investments in other furniture retailers such as Poco, Conforama, and Lipo, expanding its reach and market share.
Recently, XXXLutz made a significant acquisition with the takeover of Home24. This acquisition has allowed the company to integrate household goods chain Butlers into its branches in Germany and Austria. The company has recognized the importance of online sales and has invested heavily in this area. Online business now makes up a significant percentage of total sales for the company.
Despite the dense network of furniture dealers in Austria, XXXLutz continues to expand its reach with new locations planned in Vienna and Linz. This expansion strategy is part of XXXLutz’s overall growth plan and positioning as a major player in the furniture industry.
In summary, despite facing challenges such as declining new construction, high interest rates, inflation