Amidst challenges such as declining new construction, high interest rates, inflation, and a general reluctance to buy, the furniture trade is currently facing significant difficulties. This has led to bankruptcies and dwindling sales in the industry. However, despite these struggles, furniture company XXXLutz appears to be relatively unaffected by these difficulties. With the insolvency of Kika/Leiner and the closure of half of its branch network, XXXLutz was able to capture some of the released sales of 300 million euros.
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. To meet this demand, 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