After Casa, another essential brand in the low-cost decoration sector finds itself in great difficulty: GiFi. Founded more than 40 years ago, the French brand, which has nearly 600 stores in France, is currently looking for a buyer. With a turnover of 1.3 billion euros in 2023, GiFi's situation is paradoxical. Because despite a strong presence in France, the brand is facing a series of crises which are jeopardizing its future. But what will become of this low-cost bazaar giant and its hundreds of points of sale?
GiFi, the story of a “bazaar” of genius
The GiFi brand was created in the 1980s, driven by the vision of Philippe Ginestet, a daring businessman who knew how to take advantage of the craze for low-cost products. First positioned on the very targeted “bazaar” market, GiFi then diversified over the years, expanding its catalog. Today we find a wide range of products on the shelves, ranging from interior decoration to garden itemspassing through kitchen utensils – all at a very low price! Thanks to an economic model based on very competitive prices and efficient logistics, the brand has won over a loyal customer baseparticularly in peri-urban areas.
GiFi has experienced strong expansion, not only in France but also internationally, with almost 700 stores spread across 17 countries, and 600 in France. But is this the end of the fairy tale? Lately, the fierce competitionthe saturation of the market and strategic choices risks have weakened the financial solidity of the company, like another brand currently in difficulty, Casa.
The GiFi brand, in difficulty, is looking for a buyer
GiFi's difficulties are not new. After the “clumsy” acquisition of Tati in 2017the brand struggled to integrate (and turn around) this iconic brand, without success. And these vain efforts contributed to worsen financial problems of the group. At that time, GiFi thought it could turn Tati around, but managing both brands proved to be a heavy burden. This bad acquisition was accompanied by store closures and social plans on the Tati side, marking the beginning of a series of crises.
The following years were not more kind. There Covid-19 pandemic has exacerbated economic problems, while the rise of discounters, such as Action or Stockomanihas intensified competition in an increasingly saturated sector. The difficulties have increased this year, with a serious computer problem which paralyzed the order management system.The situation quickly became untenable for the stores… Today, Philippe Ginestet, at the head of GiFi since its creation, made the difficult decision to retire at age 70. After several months of reflection, he entrusted the investment bank Lazard with the mission of finding a buyer for the brand. Offers must be submitted quickly, and the fate of 600 French stores remains uncertain.
Who could buy GiFi? What future for the 600 stores in France?
The recovery process has attracted the attention of several players in the sectorsome of which are already well established in the bazaar and discount sector. Among the potential candidates, we mention the name of Moez-Alexandre Zouari, boss from Maxi Bazar and Stockomani (but also master franchisee of the Casino group with 200 Franprix, Monop' and Monoprix stores and soon 100% owner of the Picard frozen food brand), which would be interested in the takeover of GiFiadvance Capital.
“The company must survive me in the best conditions,” assured Philippe Ginestet to his employees. But the situation remains complex and terribly uncertain. In the event of a takeover, the closure of certain stores seems inevitable. As a union representative points out in the columns of the daily newspaper South West, concerns are high among employees. GiFi currently employs more than 6,500 people in France, and any takeover will necessarily result in restructuring. In this context, the future of GiFi will largely depend on the ability of its future owners to turn things around and adapt the sign to an increasingly competitive and digitalized environment. The buyers have until this Monday, November 18 in the evening to manifest. In the meantime, to support GiFi, simply continue to hunt for bargains in store!
