KIKA/Leiner bankruptcy: competition restricts furniture trade radically!

KIKA/Leiner bankruptcy: competition restricts furniture trade radically!

Steyr, Österreich - The Austrian furniture trade is experiencing a dramatic change: After the bankruptcy of the Kika/Leiner chain, the remaining 17 branches were closed at the end of January 2025. This is followed by the closure of 23 locations that were completed in July 2023. As reported orf.at , these developments lead to a significant market concentration in the furniture sector, with experts predicting an early increase in furniture prices. Kika/Leiner still achieved 300 million euros in turnover in the previous year, which means a market share of six percent. After withdrawing the furniture chain, this sales could spread to the remaining competitors such as XXXLutz and Ikea.

It becomes particularly exciting about the takeover of the once closed branches by Kika/Leiner: XXXLutz in autumn 2024 acquired eleven locations in a real estate package, such as krone.at confirmed. After these transactions were examined by the Federal Competition Authority, it turned out that the purchase was not subject to registration because the locations could no longer be used for the furniture trade. This not only secures real estate, but consolidates its position in the market, which is already 35 percent and could continue to grow. Industry experts expect that the dominance of XXXLutz will soon grow to 40 percent.

With the closure of the Kika/Leiner branches, the competitive situation could change: the market conditions are now dominated by a few large dealers, which could bring about many negative effects on pricing policy in the furniture store. In view of a weakening competition, analysts expect furniture prices to rise faster in the coming years than in the past. The developments remain exciting and should be observed closely.