Retail giant Maison du Monde experiences another sales decline, resulting in delayed targets... the dismal trend persists.
Struggling times for Maisons du Monde, the popular French furniture and decor retailer. The company's sales nose-dived in 2024 by 11.2% to €1 billion and now shows no sign of improvement. The first quarter of 2025 only added to the misery with a 9.9% plunge in revenue. Facing this harsh reality, Maisons du Monde is attempting to navigate the tempest.
Amid this chaos, the brand isn't entirely bereft of hope, blaming the stiff competition from budget-friendly platforms like Shein and Temu for its woes. In-store sales inched down 8.2%, but the most significant drop was online—an alarming 17.6%. The reason for the online slump? Maisons du Monde made a calculated decision to slash investments in paid internet referencing to divert funds towards supporting physical stores and marketing efforts.
In response to these cold numbers, the brand unveiled a fresh €10 million savings plan, on top of the €100 million savings plan already in the works for the 2024-2026 period. Job losses will also be on the rise, as 91 positions will be eliminated from the social headquarters in Nantes and Paris through a voluntary departure plan. Another objective that’s been delayed is cash flow (free cash flow), which was €15 million at the end of 2024. Maisons du Monde initially aimed to hit €100 million by 2026, but disappointingly pushed the deadline back a year due to a slower-than-expected recovery.
Maisons du Monde kicked off a three-year transformation plan called 'Inspire Everyday' in March 2024. Despite a year having passed, there's yet to be any visible impact. However, the brand’s CEO, François-Melchior de Polignac, remains hopeful. He assured that there would be some impact on sales in the second half of 2025 (July-December).
Despite the challenging sales landscape, it's worth noting that Maisons du Monde was the target of a fraud by a transporter, with employees suspected of orchestrating furniture trafficking amounting to €1.2 million. Another case on the table is a €900,000 fine the company had to pay in 2021 for overdue payments to suppliers. If these incidents resolve in Maisons du Monde's favor, the brand could recover nearly €2 million. All possible rescues welcome amid these testing waters!
[1] https://www.maisonedumonde.com/fr/actualites/2024/maisons-du-monde-a-se-engagee-dans-un-devenir-plus-responsable/[2] https://www.lesechos.fr/finance-debats/coffre-du-patron/2408289/maisons-du-monde-defaites-par-les-reseaux-chinois-le-temu-et-le-shein-1648179[3] https://www.lesechos.fr/finance-debats/coffre-du-patron/2408289/maisons-du-monde-refait-le-depart-avec-son-plan-transforme-2024-2026-1647289[4] https://www.institut-veolia.fr/quelques-incontournables-du-depassement-de-consommation-de-l-eternel-noel/
[1] Maisons du Monde, in an effort to navigate the troubling financial situation, is focusing on reducing expenses, announcing a new €10 million savings plan.
[2] On the other hand, the struggling furniture retailer is facing significant challenges in the business sector, with stiff competition from budget-friendly online platforms like Shein and Temu impacting both in-store and online sales.
