Will JYSK and IKEA face serious competition?

As a result of the merger, the net revenues of MMXH Home Furnishings Kft. already reach the level of JYSK, which represents a new challenge for home furnishing chains in Hungary. However, IKEA has still maintained its leading position, and there is no cause for concern for the claimants to the throne.

After the merger of MMXH and XXXLutz, the company’s net sales increased by 46.8%, reaching HUF 62.3 billion, with which it now closely follows JYSK, which only produced a modest growth of half a percent in the last business year. IKEA, on the other hand, achieved an increase of 11.9%, generating HUF 146.3 billion in revenue.

Although MMXH made significant progress in terms of sales, the after-tax result is no longer so favorable: the company closed the year with a HUF 1.3 billion deficit. On the other hand, IKEA continues to show stable growth, while JYSK’s profit after tax decreased significantly, by 71.8%.

The competition between the big home furnishing chains is therefore becoming fiercer, especially as MMXH gets stronger with the merger of XXXLutz. However, IKEA continues to dominate the market, both in terms of sales and number of employees, and continues to expand in Hungary.

Smaller players in the sector, on the other hand, are in a more difficult situation. In the last decade, the number of furniture, household goods and lighting technology stores in Hungary has decreased significantly, and the trend continues. Due to the growth of e-commerce and the dominance of larger chains, smaller stores are increasingly being pushed out of the market.

In the new market situation, competition may increase further, and big players such as IKEA, JYSK and MMXH will certainly try to take advantage of the merger, while smaller businesses will face increasing challenges.