Discover Why Maisons du Monde Plans To Close Up To 50 Stores by 2026!

The French retailer, Maisons du Monde, could potentially close between 40-50 of its stores by 2026. This comes in light of the company experiencing significant financial setbacks in recent years.

Maisons du Monde Financial Decline

In , the company reported a noteworthy drop in sales, showing a decline of 9.3% from the previous year. This brought their total sales to just 1.13 billion euros. A variety of economic challenges in the decor sector have been the driving force behind this financial struggle.

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Economic Challenges

The decor sector has had to navigate through geopolitical uncertainties, record-breaking inflation, and a decrease in overall consumer confidence. Sales of decor items took a particular hit, falling by 9.9% whilst sales also saw a decrease, albeit slightly less at 8.4%.

Addressing the Challenges

Despite these challenges, Maisons du Monde has been proactive in coming up with strategies to mitigate the damage. The company insists that although they plan to close or transfer 40-50 stores, it will not directly equate to a net reduction of 50 stores.

By 2026, the company plans to expand and operate approximately 400 stores. The strategy to transfer and shut stores is aimed at optimizing operations and strengthening profitability in an unstable economic environment.

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The company is also contemplating reducing stock by a month and halving their number of suppliers to streamline their operations further.

Recovering from Drop in Sales

As a result of the drop in sales, Maisons du Monde had to resort to reducing their prices. Customers have seen an average reduction of 12% in light of the unfavorable economic conditions.

This pricing strategy is an attempt to rekindle customer interest given the impact of inflation. It's a vital move to ensure the decor sector recovers from tough periods, such as the bankruptcy of Habitat and a stagnant property market.

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