XXXLutz Defying Challenges: How Austria’s Second-Largest Furniture Retailer Maintains Growth and Expands Its Market Share

Despite facing challenges such as declining new construction, high interest rates, inflation, and a general reluctance to buy, the furniture trade is still seeing some growth. Furniture company XXXLutz appears to be relatively unaffected by these difficulties. In response to the crisis, the company has adapted by offering more affordable and smaller furniture options. This has led to a demand for smaller and cheaper furniture items, particularly for rental apartments.

XXXLutz has engaged in an aggressive price war, advertising heavily and offering a variety of sales lines both in-store and online. The company’s ability to capture some of the released sales of 300 million euros after the insolvency of Kika/Leiner and the closure of half its branch network has allowed it to grow despite industry challenges.

Despite these challenges, XXXLutz has managed to achieve a small profit in Austria. The company, with sales of around 6 billion euros and 27,000 employees, has grown to become the second-largest furniture retailer in the world after Ikea. The company has made strategic investments in other furniture retailers such as Poco, Conforama, and Lipo, expanding its reach and market share.

Recently, XXXLutz made a significant acquisition with the takeover of Home24. This acquisition has allowed the company to integrate household goods chain Butlers into its branches in Germany and Austria. The company recognizes the importance of online sales and has made it a significant percentage of total sales.

Despite being part of a dense network of furniture dealers in Austria, XXXLutz continues to expand with new locations planned in Vienna and Linz as part of its overall growth strategy positioning itself as a major player in the furniture industry.