MFI is poised to lose its crown as the UK's top furniture retailer after more than two decades, a report says.
Its sales have nose-dived due to a "disastrous" repositioning exercise in 2004 coupled with supply chain problems, market analysts Verdict Research said.
Catalogue chain Argos will knock it off the number one spot by the end of the year, they predict.
MFI is also expected to fall behind DFS and Ikea in the furniture retail market.
Argos has "aggressively" targeted furniture sales over the last five years.
It is on track to have a 6.2% share of the UK's furniture market by the end of this year, but could be overtaken by Scandinavian chain Ikea during the next five years, Verdict predicts.
The retail arm of MFI was sold to private equity group Merchant Equity Partners earlier this year.