French group Maisons du Monde aims to sell 40 to 50 stores by 2026

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## French group Maisons du Monde aims to sell 40 to 50 stores by 2026

 Furniture and decoration group Maisons du Monde plans to sell or close 40 of its 340 stores by 2026, with an additional goal of converting 30% of its network to franchise or affiliation agreements. This decision follows a decline in sales for the company in 2023, with a net profit decrease of 74% compared to 2022. The closures are part of Maisons du Monde's strategy to optimize its store network, aiming for a more balanced and efficient capital structure. That's read by Le Parisien.
 
 Despite facing a challenging market environment characterized by geopolitical uncertainties and unprecedented inflation, the company recorded a 9.3% decrease in sales in 2023, totaling €1.13 billion. Specifically, decoration sales dropped by 9.9%, while furniture sales decreased by 8.4%. In response, Maisons du Monde plans to improve profitability by renegotiating rents, transferring ownership to affiliates, or relocating stores to more commercially viable areas.
 While emphasizing financial discipline and simplification, Maisons du Monde aims to achieve €85 million in savings over three years. This involves reducing inventory levels and halving the number of suppliers. Despite the closures, the company anticipates opening new stores as part of its overall strategy.
 In summary, Maisons du Monde's restructuring plan aims to address profitability challenges amid changing market conditions, focusing on optimizing its store network and operational efficiency to drive future growth.
 Source: Le Parisien

 Publication date:
 
 Wed 13 Mar 2024

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