The interior design industry is facing a severe crisis, with rising debts and financial instability affecting retailers and wholesalers alike. Data from BIG InfoMonitor and BIK reveal that total arrears in the retail and wholesale trade sector exceeded PLN 9 billion in January 2025. Overdue liabilities in retail alone increased by PLN 207.4 million (6.6%) year-on-year, reaching over PLN 3.33 billion.
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A key factor is the shift in consumer behaviour, particularly among Generation Z, which prioritises experiences over material possessions and embraces more sustainable consumption. This trend is further straining a retail sector already grappling with late payments and insolvencies. In the first half of 2024, 697 trading companies, including 340 retailers, declared insolvency, marking a 26% year-on-year increase.
The furniture and home accessories sector is particularly affected, with overdue debt in furniture, lighting, and household goods sales rising by 82.7% year-on-year to PLN 149 million in January 2025. The crisis is driven by high living costs, rising loan repayments, and economic uncertainty.
Experts highlight that the growing preference for e-commerce and direct-to-consumer sales is reshaping the market. Late payments remain a major issue, with 86% of small and medium-sized enterprises reporting delays that impact their financial stability. Wholesale trade is also struggling, with outstanding debts increasing by PLN 259 million (6.2%) to over PLN 4.4 billion.
Despite these challenges, analysts anticipate a moderate recovery in 2025, driven by lower inflation, potential interest rate cuts, and stabilising consumer confidence. January 2025 data from GUS shows a 4.8% increase in retail sales compared to the previous year, suggesting a potential rebound for durable goods. However, businesses must adapt to evolving consumer expectations to survive in an increasingly competitive market.
Source: www.biznes.meble.pl