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Record office furniture sales for 2007 in Czech Republic

Wednesday 14 May 2008

The four largest furniture retail chains had record sales at Kc12.4bn last year, partly thanks to the arrival of Austrian chain Kika which raised the sales by Kc4.2bn, a chart of top 50 outlets, drawn up by the Incoma Research company and the Moderni obchod magazine, shows.

Czechs were spending increasingly more money on furniture in the last few years. They tend to buy the goods in the largest outlets.

Total furniture consumption in the Czech Republic, including office furniture, reached Kc38.4bn last year.

The highest growth in sales last year was seen by the four Ikea department stores - by Kc2.5bn to Kc7.3bn.

Association of Czech Furniture Producers (ACN) estimates also show that consumption of furniture, including the imported one, grew by 11.6 percent to Kc38.4bn last year.

The growing trend is related to the construction boom seen in the Czech Republic at the moment. The boom concerns not only housing construction, but also offices, for example,\" ACN secretary Tomas Lukes said.

Despite the fact that most clients prefer large department stores, there are over 2,000 smaller shops in the Czech Republic, Petr Vorisek of Incoma Research told CTK.

Thanks to growing demand, Vorisek expects new furniture retail chains to enter the Czech market. Among the companies which have already opened their first shops in the Czech Republic are Jysk, Kika and Lutz.

\"Further furniture sellers, for example Slovenia\'s Lesnina and Poland\'s Almi Decor, prepare to enter the Czech market,\" he said.

Industry and Trade Ministry analysis says that furniture consumption in the Czech Republic should grow also in the coming years.

\"People will be replacing in particular furniture from living rooms and bedrooms which in our country is being used for up to 20 years on average, while in advanced EU countries home furniture is used for 10 years on average and then replaced by a new one,\" the analysis says.

Home and office furniture production grew by nearly 5 percent to Kc58.2bn in the Czech Republic last year, according to ACN analysis. Three quarters of the output, or furniture for some Kc44.7bn, were exported.

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