This report provides a market overview of Poland’s furniture sector through end-2013 and summarizes corporate news for firms including Black Red White, Forte, Ikea, and Nowy Styl. (Most of these firms also have a presence in Ukraine, Sweden, and throughout Eastern Europe). The report also highlights export trends, particularly to Germany and Russia.
In 2012 and 2013 the Polish furniture sector continued to face difficulties related to shrinking external and domestic demand in the context of the global economic crisis. As furniture manufacturers started downsizing production and restructured business in order to adjust to diminishing demand, furniture output volume unsurprisingly declined on an annual basis in 2012 and continued downward from January to October 2013. Gross furniture output (including sales of companies to other companies plus sales to final consumers) also dropped year on year in value terms in 2012, but is expected to have picked up during 2013 enough to top the record 2011 value in 2014.
The Polish furniture sector performed above the EU average in 2012 and the country maintained its leading position among European furniture exporters and producers. Poland accounted for 8.1% share of EU furniture production value in 2012 (compared to 6.3% share back in 2008) and will predictably continue gaining ground in this regard. The value of furniture exports is also projected to reach record levels in 2013, at nearly EUR 6.9bn, according to market forecasts. While the EU still accounts for most of Poland’s furniture exports, deliveries to non-EU countries are expected to exceed EUR 1bn in 2013 for the first time ever.
• In corporate news, furniture manufacturer and distributor Black Red White opened its 75th store in Zamosc, Lublin province. Furniture producer, retailer and wholesaler Forte S.A plans to further expand abroad and diversify its export market beyond Germany. Both Black Red White and Forte are also present in or export to the Ukraine and around Eastern Europe.
• Sweden’s IKEA will continue investing in Poland and plans to open an online store. Polish office furniture producer Nowy Styl acquired its German counterpart Rohde & Grahl.
• Germany accounts for 39% of Poland’s furniture exports, with France and the United States trailing far behind in second and third place. However, exports to Russia (now the ninth largest export market) are currently growing at a double-digit pace and Russia should enter the top five export destinations in the near future.
Table of Contents
1. Market Overview
1.1 Polish furniture sector performs above EU average in 2012
1.2 Largest players record improving y/y results, despite lower overall sector’s sales revenues, profitability rates
1.3 Furniture exports expected to hit record level in 2013
1.4 Exports to Russia to continue growing at double-digit annual pace
1.5 Furniture, radio, TV, household appliances retail sales temper annual growth in Jan-Sep 2013
1.6 Sold production value shrinks y/y in 2012, Jan-Sep 2013
1.7 Furniture output volume down y/y in Jan-Oct 2013
2. Corporate news
2.1 Black Red White opens 75th store, in Lublin province
2.2 Forte to further expand abroad, aims to maintain double-digit y/y growth in coming years
2.3 Jysk chain reaches 154 stores, to further expand by 15 shops per year
2.4 Ikea to continue investing in Poland, plans to launch online store
2.5 Nowy Styl acquires German office furniture producer Rohde & Grahl
2.6 Abra launches large format store in March 2013, moves on with chain expansion
2.7 Household goods wholesaler Grupa Grass buys furniture, lighting equipment retailer Duka
2.8 Plywood maker Pfleiderer Grajewo’s profitability improves in Jan-Sep 2013
2.9 Barcocapital Investment acquires home decor retail chain Sklepy Komfort
Table 1 Average basic financial indicators of major 400 furniture producers in 2010-2012
Table 2 Major furniture producers - Selected financials in 2012 (PLN thou, y/y)
Table 3 Furniture exports by product in 2006-2012 (annual, PLN mn, y/y)
Table 4 Furniture imports by product in 2006-2012 (annual, PLN mn, y/y)
Table 5 Furniture exports to Russia in 2009-2012 (PLN thou, EUR thou, % in total)
Table 6 Furniture production volume in 2011-2013 (thou units, y/y)
Table 7 FORTE S.A.- Selected financials in 2010-2013 (PLN thou, consolidated)
Table 8 JYSK Sp. z o.o.- Selected financials in 2008-2012 (PLN thou, annual)
Figure 1 Furniture production value in 2012- Poland vs selected EU countries (EUR bn)
Figure 2 Furniture industry- Sales revenues, net turnover, profitability rate in 2009-2013 (PLN mn, %)
Figure 3 Number of furniture manufacturing enterprises in 2008-2013 (annual, 9M)
Figure 4 Furniture exports to the world in 2007-2017f (USD bn, annual)
Figure 5 Exports of furniture in 2005-2013 (annual, 9M, PLN bn, EUR bn)
Figure 6 Main destinations for furniture exports in 2012 (PLN thou, % in total)
Figure 7 Main import sources for furniture in 2012 (PLN thou, % of total)
Figure 8 Furniture, radio, TV and household appliances retail sales index in 2008-2013 (monthly, y/y)
Figure 9 Retail sales index in 2007-2013 (monthly, y/y)
Figure 10 Furniture sold production value in 2010-2013 (annual, 9M, PLN mn)
Figure 11 Furniture gross output in 2007-2017f (USD bn, annual)
Figure 12 Furniture production in 2007-2017f, selective indicators (USD mn, y/y)
Release Date: Tue, 07 Jan 2014