Christmas is approaching and merchants are already starting to rub their hands to welcome the best time of the year. In the case of the Muy Mucho chain, hopes are pinned on a great campaign, the largest since its birth 27 years ago.
“The stores are going to be like Willy Wonka’s house,” announced yesterday David Monné, new CEO of the company controlled by the Quiles family. In Muy Mucho stores, customers can find a multitude of household products: candles, fragrances and all types of Christmas decoration items of minimalist and traditional inspiration.
“We launch 3,000 new products a year and with this latest campaign, we expect to close the year with revenues of 39 million euros, which represents an increase of 9% compared to the previous year,” Monné said yesterday. Based in Sant Boi de Llobregat, Muy Much boasts of the good health of its business, which withstood the years of pandemic well as confinement boosted demand for household items. According to the general director, the figures corroborate this: “the company registers a gross profit (ebitda) that is around 8% annually and has a staff of 201 people.”
The key to the business, he explains, has been to rely on growth to a franchise model. “Currently, we have a network of 160 franchised stores and 20 of our own, which serve as a test scenario. We are present in 20 countries, including France, Italy, Mexico, the United States and the United Arab Emirates,” says Monné, who has succeeded Stefan Quiles, the second generation of the business founded by his parents, Norbert and Gabriella Quiles, after moving from Algeria to Barcelona at the end of the nineties.
Another key to the business is found in the production chain: the catalog is designed in Barcelona while the items are produced in subcontracted factories. Historically, the vast majority were located in China but in recent years, the company has moved its supplier network closer to Europe due to high transportation costs. “Currently, 60% of our catalog is produced in factories in Turkey, Spain and Portugal and the remaining 40% is still in China,” said Monné.
Looking ahead to next year, the company plans to strengthen its presence in the foreign market (mainly in Italy) and also promote the online sales channel, which has always been a pending issue despite the growth of online commerce. In a more distant scenario, the Quiles family does not rule out incorporating a financial partner to drive business growth.
