The furniture industry is currently facing 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 sector. However, furniture company XXXLutz appears to be relatively unaffected by these difficulties.
In response to the crisis, XXXLutz 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.
XXXLutz recently made a significant acquisition with the takeover of Home24. This acquisition has allowed XXXLutz to integrate household goods chain Butlers into its branches in Germany and Austria. The company has recognized the importance of online sales, with online business making up a significant percentage of total sales.
Despite the dense network of furniture dealers in Austria