Danish furniture retailer BoConcept has closed three stores in Southern California as growing uncertainty around U.S. tariffs and customs regulations makes the market increasingly difficult to navigate. The move reflects wider challenges facing European companies operating in the United States amid volatile trade conditions.
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According to CEO Mikael Kruse Jensen, fluctuating tariffs and an unpredictable business environment have undermined profitability for both BoConcept and its franchise partners on the U.S. West Coast. As a result, the company has decided to consolidate its American operations and focus on regions where conditions are more stable.
BoConcept will now centre its U.S. presence on the East Coast, maintaining stores in key markets including New York, New Jersey, and Boston. Following the closures, the company will operate a total of ten stores across the United States. Jensen said the decision was driven by commercial realism rather than long-term pessimism about the market.
"We need a business where both we and our franchise partners can make money. With all the tariffs flying around, that has become difficult," Jensen explained.
The decision comes against a backdrop of rising trade tensions, which intensified further after U.S. President Donald Trump threatened new tariffs on Denmark and other countries amid disputes related to Greenland. However, BoConcept noted that tariff-related pressure was already affecting the furniture sector in the U.S. before those announcements, forcing companies to adjust pricing and operations.
Despite the store closures, BoConcept expects the consolidation to have a limited impact on its overall financial performance. Globally, the company has also reduced its store footprint, contributing to lower revenue and a sharply reduced annual result in the 2024/25 financial year. The restructuring signals a cautious but strategic response to ongoing uncertainty in international trade.
Source: www.wood-supply.dk
