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Times are tough for many businesses. One of the main reasons is the decline in purchasing power of the French due to high inflation. In fact, consumers are deserting stores, thus propelling e-commerce. This is more precisely the case of the ready-to-wear sector.
However, this is not the only sector to bear the brunt of increases in the cost of living. Among the other victims, we can also cite furniture stores. Moreover, Maisons du Monde is a striking example. For good reason, the famous brand plans to close points of sale.
Maisons du Monde stores under threat?
Interior decoration enthusiasts could soon see their habits turned upside down. The reason? Houses of the Worlda brand known for its exotic furniture and objects, is going through a period of turbulence.
The cause is an economic crisis. The figures speak for themselves: the brand has experienced a continued decline in profits between 2022 and 2024. Faced with this alarming situation, management has decided to take drastic measures.
To have
These sausages are the subject of an urgent product recall due to salmonella, the stores concerned
Indeed, its Paris and Nantes head offices have seen 91 positions eliminatedfavoring voluntary departures. You will have understood, the brand is trying by all means to redress the situation. Even to close stores?
Up to 50 stores could soon close!
To get its head above water, Maisons du Monde is banking on an in-depth transformation. Thus, as part of a plan unveiled in March 2024, the decoration brand announces a series of measures aimed at reduce costs by 85 million euros over 3 years.
This restructuring is notably accompanied by the closure or transfer of a significant number of stores. Namely, between 40 and 50 establishments out of a total of 340. This is imperative in the face of an increasingly competitive market and diminished purchasing power.
-In fact, Maisons du Monde is therefore seeking to refocus on the most promising areas. In this way, the company hopes to limit losses and, at the same time, optimize its performance.
Sales are not really there
Note that this optimization is more than necessary. Indeed, if the decoration brand was already seeing its sales decline by 9% in 2023it recorded a further decline of 11% over the first nine months of 2024.
To have
This fish that many consume is the subject of an urgent product recall in France, the stores concerned
This figure illustrates the extent of the crisis facing the company's stores. Despite this difficult context, Maisons du Monde does not give up. Management announced a plan to reduce costs and better meet customer expectations.
The objective is then clear: return to growth by 2025 or 2026. It remains to be seen whether this strategy will be sufficient to turn things around.
Maisons du Monde: its future prospects
The Maisons du Monde transformation plan, which plans to close or transfer 40 to 50 stores by 2026, raises many questions. If the brand wishes to get back up, the social consequences of this reorganization are not negligible.
The closure of points of sale will lead to job losses. This will have a direct impact on affected employees and local communities. These decisions therefore risk further weaken the sector of the furniture. In any case, the future of these stores now rests on the success of this transformation.
