Gifi is one of the many brands called bazaars because you can find everything in these stores. These are products which are often manufactured in China, which arrive in containers and which are unbeatable price. In this market, Gifi is somewhat historic. Created more than 40 years ago, Gifi is 600 stores and more than a billion euros in turnover. Its founder, Philippe Ginestet, who gave his name to the brand, decided to raise the white flag and sell to the highest bidder because the sign was going into the wall.
Gifi was a victim of his appetite. In 2017, he bought another emblematic brand, Tati. But Tati was very ill. While trying to straighten the sign, Gifi also made herself ill. We had to close stores, sell them, put in place a social plan and digestion was too difficult.
Then, a few months ago, Gifi changed its IT and she didn't do it very well. The business was paralyzed: it was impossible to place orders or organize deliveries. Stores were not receiving all the merchandise they needed. And in commerce, it's a form of obviousness, when you don't have products to sell, it's immediately more difficult.
There is a third reason. It is the development of all these brands on this market which is simply starting to be saturated. All brands of this type have progressed, including one called Action which is a bulldozer. The company from the Netherlands has opened more than 800 stores in France in ten years. This represents more than six stores opened per month on average, we have never seen this rate before.
Obviously, when you have such rapid development, it bothers everyone else, especially those who were fragile like Gifi. The brand is therefore for sale. When it is taken over, perhaps by Carrefour, there will be breakage and stores which will close because in this market too, it is like in the food sector, today there are too many stores and not enough consumers.
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