Maisons du Monde reported a revenue decline of 9.5% for the first quarter of 2024, totaling €247.7 million (-8.1% on a comparable basis excluding the UK). This decrease was anticipated, primarily due to the weak overall consumption dynamics.
Online sales fell by 8.2% to €71.4 million, despite strong market growth, particularly in Spain, Italy, and Germany. In-store sales dropped by 10.1% to €176.3 million.
The distribution group states that these results are in line with its 2024-26 transformation plan, which aims for a gradual return to revenue growth by 2025-26 and a cumulative free cash flow of over €100 million over three years.
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Halve number of suppliers
After a challenging 2023 marked by the closure of 13 stores and the transfer of five to franchises, Maisons du Monde aims to save €85 million over three years and return to growth in 2025-2026, according to their press release.
The company plans to halve the number of suppliers and considers transferring or closing about fifty of its 337 self-operated stores by 2026 if profitability does not improve. Simultaneously, Maisons du Monde aims to open new stores in more profitable areas, targeting 400 locations by the end of 2026. The company also intends to simplify its product range, as customers find the current selection overwhelming, and promises to launch its first loyalty program in 2024, according to CEO François-Melchior de Polignac.
With 7,350 employees, nearly 4,200 in France, the brand's other goals include lowering prices and reducing the number of suppliers. In early 2024, Maisons du Monde launched three pilot stores with a "renewed concept," featuring a reduced product range and experimented with price reductions on 2,200 items, which has supported sales since the beginning of the year.