Bringing together more than 600 stores in France, this brand specializing in low -prices items for the house has come close to liquidation. To find her superb, she will have to quickly sell her stocks.
In the competitive landscape of Hard Discount, brands compete in ingenuity to attract clientele in search of good deals. Among them, giants like Action and Lidl have imposed themselves by offering various products at unbeatable prices. This dynamic prompted the historic players in the sector to redouble their efforts to maintain their market share.
In parallel, online trade continues to grow, with Chinese distributors like TEMU who do not hesitate to break the prices. An upheaval which forced the brands to adapt their strategies, under penalty of seeing their attendance decrease.
It is in this context that Gifi, a French specialist in household equipment at a low price, is experiencing a major crisis. Founded in 1981 by Philippe Ginestet, the brand has experienced rapid growth, extending throughout the territory with more than 630 stores and employing nearly 6,000 employees. However, since the spring of 2023, Gifi has faced a series of challenges that have weakened its position on the market.
A hazardous computer migration in 2023 notably disorganized the entire logistics chain, resulting in delays and dysfunctions in stock management. This situation was exacerbated by increased competition, in particular on the part of brands such as action, Lidl and Temu-. In addition, unfavorable weather conditions have impacted spring and summer sales.
Faced with these difficulties, Gifi came close to the liquidation in January 2025. An agreement with the creditors, concluded on January 17, made it possible to erase a significant part of the debt, estimated between 250 and 400 million euros. In return, Philippe Ginestet injected more than 100 million euros via his holding company and sold 40 % of the capital to financial institutions, while withdrawing from the operational management. A directory committee, appointed by the banks, is now responsible for piloting the revival of the brand.
To straighten the bar, Gifi must imperatively sell his stocks accumulated since the 2023 breakdown. The challenge is high: it is a question of eating the goods without selling them, in order to preserve the value of the products and avoid a spiral of destructive discount for margins. A three -year restructuring plan has been put in place. The objective: to restore the competitiveness of the brand while preserving jobs.
Nevertheless, the road to the recovery promises to be strewn with pitfalls. The fierce competition of other discounters, combined with changes in purchasing behavior with the development of e-commerce, requires Gifi to rethink its economic model in depth. The next few months will be decisive to determine if the brand will be able to regain its place in the hearts of French consumers.