“When I started in the furniture industry thirty years ago, pure commercial instinct was the key ingredient for success. Today, entrepreneurship in retail has become ten times more challenging. Retailers must not only be buyers, but also marketers, social media specialists, accountants capable of steering performance through KPIs and profitability metrics, and HR experts who can motivate and retain employees. These are all roles that very few people naturally combine. That is why finding partners who can relieve some of that burden is more essential than ever.”

This is the view of Werner op ’t Eijnde, who has spent the past sixteen years in management at EK Retail (formerly Euretco) and is responsible for all affiliated retailers in the home textiles, furniture, and bedding segments. In an open and candid conversation, he paints a realistic picture of the challenges facing retailers today, from succession issues to the importance of flexibility behind the scenes.

Over the past decade, the role of the purchasing organization has changed dramatically.

“In the past, we focused almost exclusively on products and private labels. Today, we have transformed into a full-service organization that develops services retailers genuinely need in practice,” says Op ’t Eijnde.

Regional Analysis

One of EK Living’s most widely used tools is its comprehensive regional analysis. Data such as income levels, household composition, and purchasing power are mapped in detail by postcode area. EK Living takes this a step further with its so-called customer origin analysis.

Werner op ’t Eijnde explains:

“Retailers often believe they know exactly where their customers come from. We simply ask them to provide the postcodes and order values of their last 500 orders. When we overlay that data with market area information, the results frequently reveal major eye-openers.”

He cites a recent example from the Dutch province of Brabant.

“For years, a retailer had focused all marketing efforts within a traditional 20 to 25-kilometre radius around the store. The analysis showed that natural and infrastructural barriers, such as motorways and rivers, meant that a particular target area generated only around €50,000 in sales, despite receiving 200,000 flyers every year. At the same time, an affluent municipality outside the designated market area was attracting a significant number of customers due to natural purchasing flows. Analyses like these can immediately save retailers tens of thousands of brochures and allow them to target marketing much more effectively based on demographics, new housing developments, or specific product needs.”

Profitability Under Pressure

At first glance, turnover figures within the home furnishings sector appear relatively stable. According to Op ’t Eijnde, however, this is a misleading and potentially dangerous conclusion.

“Average transaction values have risen sharply in recent years due to inflation. In reality, this simply means that fewer orders are being written and fewer customers are entering stores. When customer traffic is lower, conversion becomes more important than ever. Retailers must ensure that every customer leaves the store satisfied and with a signed order.”

For this reason, EK Living continuously organizes training programs focused on conversion and hospitality, which are consistently fully booked.

The urgency of managing business performance closely is growing because profitability in retail is undeniably under pressure.

“Sales may remain stable, but costs are increasing everywhere. Rental costs on retail parks have risen by as much as 14 percent over the past two years due to inflation-linked indexation. Add significantly higher labour and energy costs, and profitability quickly comes under pressure.”

To provide retailers with objective insights, the organization uses anonymous financial benchmarking reports.

“We compare like with like. We do not compare a large megastore in Groningen with a local home textiles retailer. Instead, we benchmark forty to fifty comparable businesses. Retailers can immediately see whether indicators such as margins, personnel costs, housing costs, or marketing expenses are out of line. This year, we are seeing the first positive results: profitability among participating retailers has started to improve slightly again.”

Concerns About an Ageing Retail Base

Beyond profitability, demographic change is currently one of the organization’s greatest structural concerns.

“For years, we have been dealing with entrepreneurs reaching retirement age without a successor in place. Their children often no longer wish to take over the business. Many prefer the security of salaried employment and a 32-hour working week.”

According to Op ’t Eijnde, the Netherlands is also facing a structural oversupply of retail space. EK Living therefore acts as an independent matchmaker.

“In some cases, we start supporting entrepreneurs as much as five years before their planned retirement. We connect retailers looking to exit with healthy and ambitious entrepreneurs seeking expansion opportunities.”

EK Living Sleep: A Growing Portfolio

EK Living continues to expand strongly within the bedding segment.

“We recently introduced Topdream, a circular private-label mattress collection. In addition, the private label Nox (Latin for ‘night’), which was originally launched under Euretco and became highly successful during the economic crisis, is now being rolled out in geographic white spots where no Slaapkenner stores currently operate. We will also be introducing two new developments in Amersfoort in the near future, although I cannot reveal more about those just yet.”

Central Payment System

One of the organization’s most significant, yet often underestimated, strategic advantages is its central payment system. Annual independent customer satisfaction surveys consistently show how highly retailers value this service.

“The reality is that central payment is almost never the reason why a healthy retailer joins us in the first place. They come for the purchasing advantages, benchmarks, or private labels. Only once they start using the system do they fully appreciate its value,” explains Op ’t Eijnde.

A Cultural Shift

Despite the complexity of today’s retail landscape, Op ’t Eijnde remains optimistic about the future of independently owned local retailers, provided they organize their back-office operations effectively and are willing to collaborate.

“When I joined Euretco sixteen years ago, the financial crisis dominated the market and everyone mainly viewed each other as competitors. Retail consisted of separate islands. Since the COVID period, however, a clear cultural shift has taken place. Entrepreneurs and even competing buying groups increasingly come together to openly discuss market developments, labour costs, marketing strategies, and operational management.”

The conclusion, he says, is becoming increasingly clear:

“The industry has realized that surviving alone is no longer realistic in today’s challenging environment. Collaboration behind the scenes, while maintaining a unique identity in front of the customer, offers the best path forward.”