All the professionals will tell you: the furnishings market lives to the rhythm of the cycles. One year of increase – sometimes two – follows a decline phase. But since 2020 and the Cavid crisis, the movements have gained amplitude, for the better and the worst. During the confinements, the contraction of sales due to the closure of the stores had been limited by the explosion of online commerce. The French, cloistered, had a hobby to pass their accommodation in a sifted, to influence their club chair, to dream of a design lamp … carried by the generalization of telework and the desires of household change, the years 2021 and 2022 each ended by more than 14 billion euros in turnover for the sector. “The post-Covid was exceptional,” recalls, a bit nostalgic, Jean-Charles Vogley, the director of the National Federation for the Furnishment and House equipment.
In the euphoria, many believed that this appetite was going to last. Increase in logistical capacities, opening of even larger stores, renewal of ranges, etc. The brands have granted heavy investments. “This period created the illusion of a sustainable request,” recognizes François-Melchior de Polignac, director general of Maisons du Monde. The return of stick was all the more harsh. In 2022, the war in Ukraine and the energy crisis caused an inflationary thrust. To curb it, the European Central Bank increases its key rates. An increase that has repercussions on real estate credits.
Blow for the stone market. In France, sales of houses and apartments collapse, and furnishings with it. Consequence: “The brands must now restructure or, at least, adjust their size”, notes Etienne Sebaux, general manager at Alixpartners. With 13.8 billion euros in sales in 2024, the market did better than in 2019. But the trend is gloomy: – 5.1 % over one year in value, after a decline of 2.5 % in 2023. A lesser evil for Christophe Gazel. “Without the positive effect of the COVID period, the decline would have been more marked, between – 10 and – 12 %”, estimates the director general of the Institute of Studies and Promotion of Furniture.
More compact stores
The big actors are not spared. At the end of January, Maisons du Monde – more than 4,000 employees in France – announced the abolition of 91 jobs, after a decline last year by 11 % of its turnover. Even the Swedish champion Ikea saw his own 3.6 % in France. Placed in compulsory liquidation at the end of 2023, Habitat, which pulled the curtain from its 25 shops, is currently trying to return 100 % online, with the intention of surfing new purchasing habits. Thierry Huz is well placed to observe the phenomenon: “We see arriving on the market a young generation accustomed to buying on mobile, describes the director of house offer at Cdiscount. This influx will mechanically lead to an increase in online sales. The existence of stores where customers can order directly on the web also promotes the trend. Some consumers still want to see the products before buying. Internet, against 9 % currently. “
With the surge of electricity billsthe immense showrooms on the outskirts of cities lose ground, for the benefit of smaller areas. “At Alinéa, historically, we were relying on very department stores, from 10,000 to 12,000 square meters. Recent tests have allowed us to see superior satisfaction in more condensed spaces,” said Managing Director Alexis Mulliez. Maisons du Monde follows the same strategy. “Our customers acclaim the richness of our offer, notes the CEO. But it is synonymous with a complexity that can destabilize them.” Inventor of the extended customer route, over 20,000 square meters, to arouse pulse purchases – you enter to buy three candles, you leave with an equipped kitchen -, Ikea also revises its gigantism downwards and tries to formats for compact stores. “Distributors must offer a more immersive experience because tomorrow, artificial intelligence will allow people to project themselves into the development of their interior”, predicts Christophe Gazel. Until then, the expert expects new closures and layoffs. For cash flow chains, the risk is great to end up at the carpet.
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