Structural change, adverse conditions, and noticeable consumer restraint: The furniture trade is also under pressure. Compared to the previous year, sales fell by 6.1% in 2024, amounting to approximately €23.9 billion (2023: €25.4 billion). This continues the negative trend evident since 2022 – an upturn in the furniture market is not expected until 2026 at the earliest. This is also because the ongoing housing crisis is one of the main reasons for the weakening furniture market. These are the findings of the current Furniture Report, which has been conducted on behalf of the SME Association since 1999 and was presented for the first time this year by the IFH Cologne.
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In this uncertain environment, the strength of cooperative SMEs stands out: With a 75% market share in traditional furniture and kitchen retail, their importance remains high. However, competition between international platforms and brick-and-mortar SMEs is becoming increasingly fierce due to aggressive pricing models and sometimes unequal regulatory conditions. This is increasing the pressure on specialist retailers to transform and digitize, which is also reflected in the growing importance of online retail in the furniture sector: In an overall declining market, the online share of sales of home and office furniture rose from 14.4% (2023) to 15.4% (2024).
'The brick-and-mortar sales share remains dominant. But the importance of digital information and comparison options is increasing. This development also requires brick-and-mortar furniture retailers to adapt and digitise their own business models, which is not always easy for medium-sized companies to operate alone. But it succeeds through cooperation, which is precisely why it remains an unbeatable model for success: The 75% market share of cooperating medium-sized businesses in the furniture and kitchen trade clearly confirms this,' says Dr. Marc Zgaga, Deputy Managing Director of the Mittelstandsverbund (SME Association) and Head of the Furniture and Kitchens Specialist Group.
'The mission to continue shaping digitalisation remains: This is where the project management of the Furniture and Kitchens Specialist Group within the SME Association comes in. On this platform, 14 associations with over 7,000 furniture and kitchen retailers find common answers to the challenges in the areas of digitalisation, sustainability, and communication. This sets the right course to keep the cooperative furniture and kitchen trade competitive and future-proof.'
More information:
Mittelstandsverbund (SME Association)
www.mittelstandsverbund.de
