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    You are at:Home Rotpunkt retailers capitalise on ‘more value per kitchen’
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    Rotpunkt retailers capitalise on ‘more value per kitchen’

    Sam AllcockBy Sam Allcock20/02/2024No Comments5 Mins Read9 Views
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    Rotpunkt, award-winning designer and manufacturer of climate friendly German Kitchen furniture, is pleased to report a consistently healthy turnover of 100 million EUR in 2023, along with new geographical and commercial growth markets, and more value per kitchen for the retailer following the company’s latest finance report at year end…

    Healthy annual turnover: As the KBB market continues to navigate the UK economy, significant environmental change, and associated manufacturing costs, Rotpunkt Küchen has achieved a healthy turnover of 100 million EUR for two consecutive years. Andreas Wagner and Heinz-Jürgen Meyer, Managing Partners at Rotpunkt Küchen explain, “In view of the extremely difficult market conditions that followed the enhanced demand of COVID-19, this is a very satisfactory result.” Sven Herden, Managing Director of Sales & Marketing agrees and adds, “Of course we would like to achieve more growth in turnover but, given the widely reported economic downturn and inflation, I feel these results are realistic for the beginning of the year.” In fact, the company’s turnover has steadily risen over the last 5-10 years, seeing an increase of over 35 million euros when compared to 2018 figures at 65 million EUR.

    More value per kitchen: Helping to create a positive financial trend among its network of UK retailers, Rotpunkt is pleased to report that its range of furniture offers more value per kitchen and higher sales commission. Although this rise is not reflected in the volume of cabinets produced last year, retailers are reportedly selling more Rotpunkt furniture and enjoying greater margins and planning options that go beyond the kitchen space. Emphasising the company’s core philosophy where the home represents the ‘centre of life’ for many, Rotpunkt design and make furniture for the kitchen, utility, laundry room, and walk-in dressing room to furnish the entire home and allow customers to compare or contrast with the cabinetry, worktops, handles, and integrated lighting.

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    Modernisation vs. Employee gains: The continued rise in materials and energy prices continued to challenge the company’s business operations in 2023. However, Rotpunkt was able to limit these amplified costs with moderate price adjustments so it could maintain its standing as a strong multi-million-pound company with positive earnings and a continued path to modernisation. With continued investment in a new Warehousing & Logistics building, and also in machinery, logistics, its vehicle fleet, the digitalisation of production and business processes, as well as social issues for the Rotpunkt workforce. In December 2023, the company is proud to employ a broad mix of 364 men and women at each site in Bünde and Preußisch Oldendorf, and maintain its important reputation as an employer of choice in the region.

    Growth in France: Generating the majority of sales from countries in western Europe, Rotpunkt is pleased to report its export ratio remains at 80%. The Dutch market continues to be a strong supplier of Rotpunkt furniture with sales generating the same results as last year, and the same applies to the Scandinavian market, which is heavily supporting the brand within the contracts market. Interestingly, France emerges as the biggest growth area for Rotpunkt, demonstrating extremely high growth, and this is bolstered by new developments in Austria and Switzerland.

    Commitment to the British Isles: From Great Britain to the Channel Islands, business across the British Isles has been faced with particularly high inflation rates, when compared to the rest of Europe and these increases have slowed the level of growth in the UK. In response, Rotpunkt will invest in its sales and development team to promote a greater level of engagement from new and existing customers in the British Isles. Given that the UK is regarded as one of the largest markets in Europe, it seems only logical to accelerate investment across these sales territories. For instance, in January 2024 Rotpunkt UK appointed John McWhinnie, an experienced sales representative to oversee customers in the north of the British Isles and create new sales opportunities across northern England and Scotland.

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    Trade show benefits: Part of the Küchenmeile, Hausmesse, the in-house exhibition held annually in September is the most important event of the year for Rotpunkt, and the company will continue to do its part to further strengthen global relations for both brand and industry following each Küchenmeile. Additionally, other trade shows across Europe such as kbb Birmingham (March 2024), Esprit Meubles in Paris (November 2024) and Kitchen Living Trends in Salzburg (May 2025) will allow Rotpunkt to present its products in a country-specific manner and be supported by local sales teams to create new contacts and strengthen ongoing partnerships.

    2024 outlook: Collectively, the senior management team says, “The market is tough right now and in the short term, forecasts show this financial year won’t get any easier. However, we can still offer a positive outlook as 2024 has just begun and currently, there is a good build-up of orders, so we are confident over the coming months.” Sven Herden adds, “At the moment, it is important to maintain Rotpunkt’s good economic position, strengthen existing partnerships and take a closer look at choice suppliers and new business connections. However, risk assessments of this kind are not exclusive to Rotpunkt, and retailers are also looking closely at who they can rely on.”

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