The world of low-cost decoration is booming. After the recent difficulties encountered by the Casa brand, it is the turn of GiFi, famous for its affordable prices and its varied products, to go through a major crisis. With 600 stores across France, GiFi has established itself for decades as an essential destination for consumers looking for good deals on decoration, gadgets and everyday items. However, the future of the brand is currently uncertain.
GiFi: the historic decoration brand is going through a crisis
Since its creation, GiFi has captured the hearts of millions of households thanks to its diverse offering and attractive prices. Garden furniture, furniture for all parts, objects et decorative accessories… The brand has established itself as the reference essential for those looking to furnish their home at a low price without compromising on style.
However, despite more than 40 years of success, with almost 600 stores and a turnover exceeding one billion euros, GiFi today finds itself at a turning decisive. Its founder, Philippe Ginestet, who built the brand in his image, decided to hand over. Faced with growing difficulties and seeing the company heading straight towards a impassehe chose to put GiFi on sale, looking for a buyer capable of turning things around.
GiFi: how can we explain the financial difficulty of this decoration brand?
Several factors explain this financial difficulty : in 2017, GiFi acquired Tati, another iconic discount brand. But trying to turn this brand around has had its consequences dramas for GiFi. THE process has indeed been difficult: closing stores, selling assets, implementing a social plan… a “weight” too heavy to carry.
Then, the pandemic Covid-19 also hit the retail sector hard, changing consumption habits and weakening brands already in difficulty. Finally, a new computer system recently implemented has generated logistical errors et unforeseen additional costs, further complicating the situation.
These other decoration brands in crisis
Unfortunately, GiFi is not the only decoration brand low price to face headwinds. Casaanother brand well known for its low prices, is also going through a period of turbulence. In 2024, the brand, which operates approximately 400 stores including 156 in Francehad to close several stores, including 12 in the Netherlands and 25 in France, due to persistent financial difficulties.
The brand is trying to recover thanks to a ambitious restructuring plan, including in particular a clearance massive and significant promotions to reduce excess inventory. For the moment, no complete closure plan has been announced for France, and the brand is banking on sales end of year to generate cash and maintain its activity.
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