This article is a part of Poland Unpacked. Weekly intelligence for decision-makers
After years of prosperity, when it regularly generated tens of millions of zlotys in annual profits, the Polish home furnishings retailer entered a period of losses and sweeping changes. The founder’s daughter is now leading its transformation, with the founders of fashion giant LPP among its investors. The ambition is to become a leader in the premium segment. Early signs of improvement are already emerging.
Poland’s home furnishings market, worth billions of zlotys, is one of the major e-commerce categories, alongside electronics and other consumer goods. Domestic retailers, however, face intense pressure from Chinese platforms such as Temu, Shein and AliExpress. At the same time, discount chains including Pepco, Tedi and Mr.DIY are expanding rapidly across Poland, offering basic household products at low prices.
This presents a considerable challenge for retailers competing primarily on design and aesthetics. The pressure is evident in home&you’s financial results. Despite an improvement in 2025, the company remains well below its historic performance. Revenue reached PLN 471m, while its net loss stood at approximately PLN 11m. The transformation launched last year is intended to restore profitability and regain market share.
“Since 2022, our share of Poland’s home furnishings market has fallen from around 1.9% to 1.2%. We are targeting 2% by 2031, and even more in the premium segment, where we want to become customers’ first choice. We remain specialists focused on quality and aesthetics. We are not trying to offer everything to everyone by competing with discount chains and Chinese platforms. Our strategy therefore envisages exceeding PLN 1bn in revenue by 2031,” says Magdalena Barańska, CEO of home&you.
Early results of a strategic transformation
Poland’s home furnishings market has expanded in recent years and is forecast to continue growing by several percent annually. Yet home&you recorded its highest operating profit, PLN 58m, back in 2018, when revenue reached PLN 526m. A year later, sales increased to PLN 566m.
The company subsequently matched that level of sales only once. In 2022, revenue reached PLN 571m, but profit fell by three-quarters to less than PLN 10m. The following year, the company slipped into the red. Over three consecutive years, its cumulative net losses reached approximately PLN 53m.
“The market was growing while we were shrinking. Our market share fell by more than a third. That was the result of both difficult market conditions and poor decisions on our part. We are focusing on what we can control. The main objective of our transformation is to improve operating profitability. We are already seeing significant results. We improved our net result by PLN 22m year-on-year, and this is only the beginning,” says Barańska.
Interactive chart Difficult years and costly mistakes
Other retailers have also struggled. Duka, another home furnishings brand, has faced renewed financial difficulties in recent years, with its stores disappearing from shopping malls. Maciej Biesiada is now attempting to revive the Swedish brand, initially through e-commerce.
“We avoided a more serious crisis thanks, among other things, to cost discipline, a focus on priorities and an awareness of our mistakes. The first difficult moment came in 2019, when we realized we had overinvested in inventory. Then came the problems caused by the COVID-19 pandemic and the war in Ukraine. In 2024, however, we made overly abrupt changes to our product range,” Barańska explains.
Consumer tastes were also evolving, while the chain remained committed for too long to a single, highly decorative aesthetic. The company therefore decided to appeal to new customer groups, modernizing its product range while also changing its price positioning and promotional strategy.
“The direction had potential, but we failed to translate it consistently into every aspect of the brand experience and our communication with new customers. We learned a very concrete lesson from that. This is why our current strategy was preceded by an in-depth analysis of the market, consumers and competitors,” says Anna Wasińska-Golonka, Vice President of home&you.
Good to know
Succession at a company with more than 30 years of history
Although the home&you brand was established in 2006, the company’s roots go back to 1992, when it operated under the name BBK. Its founder, Wojciech Olejniczak, led the business continuously until 2025 and remains its largest shareholder. The remaining shares are held by foundations associated with the families of Marek Piechocki and Jerzy Lubianiec, the founders of Polish fashion group LPP.
Olejniczak’s daughter, Magdalena Barańska, succeeded him as CEO after previously serving as vice president. She joined the company at the age of 21 and has now worked there for more than two decades.
“We remain a family business. Succession was a natural step for me, and I had been preparing for it for a long time. It happened during a difficult period for the company, but we have a clear objective and the right team to achieve it. Wojciech Olejniczak, my father, has not lost interest in the business, but decisions are now made by the current management board,” says Barańska.
Home&you does not want to be a brand for everyone
The experience of recent years has convinced home&you that trying to appeal to everyone is the wrong strategy. Instead, the company wants to respond more precisely to the needs of selected customer groups and build on its strongest capabilities. It has identified its target segments through consumer research.
“Aesthetics, quality and design are essential to us. We have defined customer personas that will guide both our product development and communications. We are deliberately not trying to cater to every possible shopping need. We want to be exceptionally good at serving customers whose expectations align most closely with our heritage and expertise,” explains Anna Wasińska-Golonka.
The changes extend beyond the product range to how merchandise is presented and the role of individual categories in stores. Bedrooms and dining rooms will become the two principal areas of focus. Home&you already has a strong position in both categories, and under the new model they are expected to play an even greater role in attracting customers to its stores.
Expert's perspective
Competition matters, but market prospects matter more
Between the mass market and the luxury segment, Poland’s premium home furnishings market is developing rapidly. We see considerable room for a brand with Duka’s history and emotional appeal. It fits this opportunity particularly well because many consumers still remember the brand and feel attached to it.
I follow every transformation among our competitors with interest and respect, because the past few years have been difficult for the industry. Competition remains intense, but the market is still highly fragmented. On one side are large retail chains and international e-commerce players such as Westwing. On the other are hundreds of small retailers and online brands.
Nevertheless, relatively few companies in the premium segment have genuinely strong brands. In today’s market, success is not determined by the number of physical stores. It belongs to those capable of building genuine relationships with customers and earning their trust.
The number of home furnishings retailers competing in this market depends on how broadly one defines “premium.” We do not focus on that number, because what matters most to us is a clear, positive trend. The category is being reshaped and is increasingly distinguishing itself from both the luxury and mass-market segments. We want Duka to play an important role in that process.
“We have no intention of competing with discounters on their terms”
The company will introduce its new store concept gradually, with the full transformation expected to become visible in 2027.
“The goal is not simply to stock more products. We want a broader, better-curated range, particularly in our strategic categories. At the same time, we will streamline some other categories and gradually move away from the lowest price points. Price is the main competitive factor in those segments, and we have no natural advantage there,” says Wasińska-Golonka.
She points to bathroom accessories, including soap dispensers, as an example of a popular category where price competition is particularly fierce.
“We are taking a selective approach to our product range. Rather than offering large numbers of similar items at the lowest prices, we are focusing on products with clear added value – whether through design, material quality, finish or attention to detail. Some categories may contain fewer products, but each should have a clearly defined purpose and a reason for customers to choose us. We have no intention of competing with discounters on their terms. We compete through what we do best: design, quality and a distinctive product range,” Wasińska-Golonka explains.
Promotional strategy is working, with minor adjustments ahead
Home&you sees growing polarization in the market. On one side, more consumers are seeking basic products at the lowest possible prices. On the other, a growing group is willing to pay more for superior quality and design. The trend is visible across Poland, not just in its largest cities.
“We do not offer discount-store prices, but neither do we offer discount-store quality. We position ourselves in what is known as the affordable premium segment. Our promotional model makes this possible, and we intend to retain it,” says Barańska.
Interactive chart Home&you’s regular prices are relatively high compared with some competitors, or fall within the market’s midrange. At the same time, the brand has long relied on promotions, including discounts for purchasing multiple items.
“This is a deliberate part of our strategy and one of our competitive advantages. It is well suited to how home&you customers shop for their homes. They often buy several complementary products for a particular room or interior arrangement rather than a single item. We know this model works and understand how to manage it, so we have no intention of abandoning it. We will, however, continue refining it. We want to make our promotions more targeted, tailoring them to product categories, store locations and different times of the year,” says Wasińska-Golonka.
Expert's perspective
Polish homes are becoming more decorative
This shift is expected to be driven by a nearly 38% increase in sales of home decor products between 2025 and 2031 – the fastest growth among the various furniture and home furnishings categories. Growth in garden furniture, the next-fastest category, is forecast to be almost 10 percentage points lower over the same period.
Home decor products are sold through a variety of retail formats, including specialist stores, DIY retailers, home improvement chains and non-food discounters. According to Statista, approximately one-third of purchases in this category are made online. E-commerce is expected to continue gaining market share in the coming years.
Growing interest in home decor largely reflects the fact that consumers can improve the appearance and functionality of their homes at relatively little cost, without undertaking a complete renovation or buying new furniture. The market also benefits from the increasing importance of the home as a place where people spend their time, partly because hybrid working remains popular.
The wide range of products available at different price points also matters. It allows retailers to meet demand from consumers with varying incomes and expectations concerning price, quality, design and durability.
Rising Polish incomes are another factor supporting spending. In 2025 alone, average monthly disposable income per person increased by almost 7% in real terms, according to Statistics Poland. The share of income devoted to expenditure fell from 59.3% to 56.7%. This leaves households with more discretionary income after covering essential expenses, creating greater scope for optional or impulse purchases.
Over the coming years, however, market polarization is more likely than a wholesale shift toward premium products. As incomes rise, the number of consumers interested in higher-quality and even luxury goods will increase.
At the same time, mass-market consumers will remain price-sensitive. If incomes stagnate or decline, purchases can easily be postponed, cheaper substitutes chosen or visually similar products bought at lower prices. This will continue to create favorable conditions for discount retailers, including their private-label brands, and foreign e-commerce platforms.
Store network set to expand
Home&you’s transformation also includes its physical retail network. At the end of 2017, the brand operated around 130 stores in Poland, with a combined floor area of approximately 40,000 square meters. At its peak, the network exceeded 150 stores. Today, it has 130 locations, with plans to increase that number to 132 by the end of the year. Expansion is expected to accelerate from 2027.
“We plan to open 30 stores between 2027 and 2029, averaging 10 a year. We have identified one location for closure. The others are either meeting their targets or making good progress toward them. A large nationwide retail network is a competitive advantage, and we want to make full use of it as we develop our omnichannel model,” says Magdalena Stępień-Łyga, Retail Sales Director at home&you.
New stores will follow a redesigned concept, with updated aesthetics and a different approach to merchandise presentation. The optimal store size is approximately 380 square meters, although the company is open to both smaller and larger formats. Five of the 30 planned openings will be flagship stores designed to showcase the latest collections.
“We know exactly where we want to expand our existing network and where we want to establish a presence for the first time. When assessing a location’s potential and profitability, we do not look exclusively at sales generated by the physical store. Our data show a clear correlation between having a store in a particular area and higher online sales. That is why we also consider how a new location will affect e-commerce purchases within a radius of approximately 10 kilometers,” says Stępień-Łyga.
E-commerce takes center stage
Until recently, home&you focused primarily on expanding its physical store network. E-commerce, launched in 2013, remained in the background. That is changing. Both channels are now equally important to the company’s strategy, with online sales expected to steadily narrow the gap with brick-and-mortar retail.
“In 2024, online sales accounted for 25% of our revenue. We expect approximately 33% this year and are targeting 44% of our Polish revenue by 2031, equivalent to almost PLN 390m in online sales. The nature of our category works in our favor: home furnishings is one of the most digitally developed retail segments. E-commerce already accounts for one-third of sales in this market, and that share is expected to reach around 40% within five years,” says Stępień-Łyga.
Growth will be driven partly by an expanding online product range. In 2025, home&you offered 5,200 own-brand products directly through its online store. That figure has since risen to 6,200. The company plans to add around 1,000 stock-keeping units (SKUs) annually, taking the total beyond 11,000 by 2031.
At the same time, home&you is redesigning both the desktop and mobile versions of its online store. Changes include improved navigation and product presentation, intended to help customers browse its growing range more easily.
“Online shoppers expect a wide selection, so we need to deliver that. But the overall shopping experience also depends on the quality and speed of delivery. For the past year, we have been working to ensure that as many fragile products as possible, such as decorative items, are securely packaged by suppliers. This reduces the risk of damage during delivery. We are also improving our logistics more broadly. In September, we exceeded an 85% rate for orders delivered within three days, and our goal is to deliver most orders the following day,” says Barańska.
Millions to be invested in expansion
Two major changes are planned for home&you’s e-commerce business in spring 2027. The first is the launch of a mobile app incorporating its loyalty program, which currently operates only in physical stores. The second is the integration of its stores with the online business, introducing services such as click-and-collect, allowing customers to order online and collect purchases in-store, as well as the option to return online orders at physical locations.
“These are crucial changes for us. The app will help us better understand customers’ needs and interests, allowing us to offer personalized promotions and inspiration, including suggestions tailored to their nearest store. Integrating our sales channels responds to customers who want to move freely between online and in-store shopping. For example, customers will be able to return or exchange products ordered online at a physical store,” says Stępień-Łyga.
E-commerce expansion will not require major additional investment in logistics infrastructure. In 2021, the company opened a 50,000-square-meter warehouse designed to handle 8,500 orders a day. So far, its highest daily order volume has exceeded 6,000.
“Nevertheless, our investments in online sales, store network expansion and the overhaul of our product range are substantial. We expect to spend more than PLN 10m annually on these initiatives through 2031,” Barańska says.
More furniture through the marketplace
Although expanding its own online sales remains a priority, home&you is also developing the marketplace it launched in 2023. The platform is currently undergoing a significant overhaul.
“Over the past year, we have reduced the number of listings to 73,000. This reflects a deliberate selection process. We are prioritizing the highest-quality offers that best fit our product strategy,” explains Stępień-Łyga.
The marketplace is primarily intended to expand the range beyond products available in home&you’s physical stores. The company is seeking brands in the affordable premium segment that combine quality with design. Furniture is one category in which it intends to expand its presence.
In this segment, home&you will compete online not only with specialist retailers but also with larger players. Polish retail group Empik has ambitious plans for its own marketplace. Wojciech Kudaś, a member of Empik Group’s management board, discussed the details of this strategy in an interview with XYZ.
Key Takeaways
- Difficult years followed a long period of prosperity. Until 2022, home&you had regularly generated annual profits worth tens of millions of zlotys on revenue of around PLN 500m. A year later, sales fell below that level and the company slipped into losses. Over three consecutive years, cumulative net losses reached approximately PLN 53m, while its share of a growing market declined by roughly one-third. Competitive pressure coincided with strategic missteps, including excessive inventory and marketing communications that failed to reflect changes to the product range.
- A new strategy aims to reverse the decline. In 2025, the company embarked on a major transformation, led in part by its new CEO, the founder’s daughter. Home&you plans to open 30 stores by the end of 2029, while expanding e-commerce and integrating its online and physical sales channels. Its product range and communications will focus on the affordable premium segment. “We are not trying to offer everything to everyone by competing with discount chains and Chinese platforms,” emphasizes Magdalena Barańska.
- The target is more than PLN 1bn in revenue by 2031. By then, home&you aims to increase its market share from 1.2% to 2%, with even greater ambitions in the premium segment, where it wants to become customers’ first choice. Online sales currently account for approximately 33% of revenue, with a target of 44% by 2031. Growth is expected to come from an expanded product range exceeding 11,000 items, closer integration between e-commerce and physical stores, and further marketplace development. The company plans to invest more than PLN 10m annually through 2031.