A shock therapy for Maisons du monde, after disappointing outcomes | EUROtoday

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A Maisons du monde store.

Maisons du monde doesn’t escape the ambient gloom of consumption. Present in 9 international locations in Europe, the furnishings and ornamental objects model noticed its gross sales fall by 9.3% in 2023, to 1.13 billion euros. The drop in its turnover was extra marked internationally (– 12.9%) than in France (– 6.2%). And stronger in ornamental objects (–9.9%), the place the group achieves 57.6% of its gross sales, than in furnishings (–8.4%). Results: a internet revenue divided by three over one 12 months, to eight.8 million euros, in comparison with 34.2 million in 2022 – it had already been divided by two that 12 months.

“I am not going to hide behind external factors to explain our disappointing results, even if our activity was not favored by the macroeconomic context”commented on Tuesday March 12, François-Melchior de Polignac, basic director of Maisons du monde throughout the presentation of the model's new strategic plan for 2024-2026 known as Inspire Everyday.

“We were probably too optimistic” after historic post-Covid outcomes, and “too focused on expansion and investment”fairly than on “operational execution and customers”added the person who, after twenty-two years spent with the mass distribution group Carrefour, succeeded in March 2023 from Julie Walbaum, in place since 2018.

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The financial and monetary state of affairs due to this fact requires pressing shock therapy. in an effort to relaunch a bunch whose turnover is declining for the second consecutive 12 months: 25% discount in assortment, value discount on 2,000 merchandise, rationalization of the shop community to eradicate sources of loss, and use of different, much less capital-intensive retailer working strategies, corresponding to affiliation or franchise. The group introduced “forty to fifty store closures-transfers and around 30% of the network in franchise affiliation by 2026”. At the top of 2023, Maisons du monde owned 340 shops, after having bought eighteen factors of sale, 5 of which had been transferred to associates.

Listed on the Stock Exchange, the distributor of furnishings and ornamental objects took care to specify in a second step that“in no case are there net closures of forty to fifty stores”however of “transfers and closures of stores over a period of three years corresponding to a normal rhythm of the life of a network” distribution, with its lease renegotiations, its motion of factors of sale from town middle to a business exercise zone… The model provides that the strategic plan carried out will even result in a rise of their quantity to achieve 400 in 2026, “while continuing the pragmatic sanitation of the park”.

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