Austria's furniture giant under pressure: Kika/Leiner before the end?

Austria's furniture giant under pressure: Kika/Leiner before the end?

The Austrian furniture chain Kika/Leiner is faced with dramatic times after the company has again filed for bankruptcy. This means that only two major competitors in Austria-the XXXLutz Group and Ikea-could remain. Natalie Harsdorf, the General Director of the Federal Competition Authority (BWB), warns that without a competition could possibly come to customers, since the loss of Kika/Leiner is weakened by the competition, such as the crown reported. Harsdorf said that new providers have difficulty establishing themselves on the market due to existing market entry barriers.

The future of Kika/Leiner will decide by mid -January 2025, since the insolvency administrator has to check whether there is a positive continuation forecast. In the summer of 2023, 23 of the originally 40 furniture stores had already closed, and the XXXLutz group recently secured 11 locations. According to Regiodata, XXXLutz already has a market share of 34 percent and could further gain strength due to the current development, while Ikea is 19 percent.

market in upheaval

The market is currently being shaped by intensive discounts that lead to customers luring with prices of up to 70 percent inheritance. According to Thomas Saliger, spokesman for XXXLutz, these discounts are part of the annual summer clearance sales and for furniture trade are of central importance. Each Austrian invests an average of 758 euros per year in furniture and accessories, which underlines the high relevance of the market, whose total value is estimated between 5.4 and 5.7 billion euros, such as the little newspaper analyzed.

The competition, especially between XXXLutz and Kika/Leiner, is intense. With a market share of 30 percent for XXXLutz and 18 percent for Kika/Leiner, the crowding -out is obvious. At the same time, the importance of online business is gaining drive, with XXXLutz one of the most active providers on the Internet. These developments show that the dynamics in the Austrian furniture trade continue to increase while the market structures change significantly.