The furniture chain kika/Leiner has been satisfied with its business in recent months, but is still affected by the bad image of its former owner Signa. This year the aim is to achieve a turnover of up to 400 million euros with the 17 branches – even though the furniture industry currently has no wind at its back. The “Krone” asked about the specific plans.
The restart of kika/Leiner is progressing. Since entrepreneur Hermann Wieser took over the furniture retailer from the ailing Signa Group, things have slowly improved with the remaining 17 branches (23 closed) and 1,900 employees. “Unfortunately, we currently have no tailwind,” explains Volker Hornsteiner, member of the management team.
To combat the decline in the furniture trade, they will launch a cheap brand called “OHO!” in April. For example, an entire apartment of 30 square meters can be furnished for around 2,500 euros. With this offer they probably want to compete with Ikea and XXXLutz. In any case, the share of own brands must be increased from 20 to 30 percent.
But even more important is regaining customer trust. Many people are still unsure and wonder whether they would be affected by Signa’s bankruptcy. The manager emphasizes that we have nothing to do with that.
Numerous measures are planned to restore its reputation. For example, ‘gravel protection’ is now being launched, which guarantees 100 percent down payments. With the “Moneten-Saviour” there is again 0 percent financing for a maximum of 60 months. However, the two-brand strategy with Kika and Leiner branches remains in effect. However, the range is now 99 percent the same. In addition to cost savings at the head office and logistics, for example, the range has been made more attractive and the starting prices have been reduced.
A turnover of up to 400 million euros is targeted for the financial year until the end of September. But this requires – in addition to a better mood on the part of consumers – an end to the decline in housing construction.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
