Successful new start

kika/Leiner targets sales of up to 400 million euros

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09.02.2024 10:48

The furniture chain kika/Leiner is satisfied with its business in recent months, but is still suffering from the poor image of its former owner Signa. This year, the company is aiming for sales of up to 400 million euros with its 17 stores - even though the furniture industry currently has no tailwind. The "Krone" asked about the concrete plans.

The relaunch of kika/Leiner is making progress. Since entrepreneur Hermann Wieser took over the furniture retailer from the ailing Signa Group, the remaining 17 stores (23 were closed) and 1,900 employees are slowly making progress again. "Unfortunately, we don't have a tailwind at the moment," explains Volker Hornsteiner, member of the management board.

In order to defy the slump in the furniture trade, a low-cost brand called "OHO!" will be launched in April. An entire apartment of 30 square meters can be furnished for 2500 euros, for example. The aim of this offer is to compete with Ikea and XXXLutz. In any case, the proportion of own brands is to be increased from 20 to 30 percent.

Manager Volker Hornsteiner: "No tailwind in the furniture trade." (Bild: Zwefo)
Manager Volker Hornsteiner: "No tailwind in the furniture trade."

What is even more important, however, is regaining the trust of customers. Many are still unsettled and are asking whether they are affected by the Signa bankruptcy. We have nothing to do with that, the manager emphasizes.

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Want to win back the trust of customers.

Volker Hornsteiner, Mitglied der Geschäftsleitung von kika/Leiner

Numerous measures are planned to restore the company's reputation. For example, they are now launching the "Schotter-Schutz", which guarantees 100 percent of down payments. The "Moneten-Retter", on the other hand, offers 0% financing for up to 60 months. However, the two-brand strategy with kika and Leiner branches remains in place. However, the product range is now 99 percent the same. In addition to cost savings, for example in the head office and logistics, the product range has been made more attractive and entry-level prices have been lowered.

Sales of up to 400 million euros are targeted for the financial year to the end of September. However, in addition to improved consumer sentiment, this will require an end to the slump in residential construction.

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