The chain of major store closures continues. After C&A's announcement, it's the turn of another giant to announce new closures. The Gifi chain, which has been struggling for several months, announced on Thursday the closure of 11 stores in France, including 3 in the Île-de-France region. Faced with fierce competition and recurring financial difficulties, the bazaar chain is implementing an employment protection plan (PSE) involving the loss of 302 jobs, or 5% of its workforce.
In the Île-de-France region, :
are affected by this wave of closures. These outlets, considered unprofitable, " could not be turned around or taken over ", according to the group's official press release. 116 store employees are directly affected, as well as 186 employees at the Villeneuve-sur-Lot (Lot-et-Garonne) head office.
The group cites " unprofitable stores " and an urgent need to adapt its business model. This job-saving plan (PSE) is accompanied by the elimination of 302 positions nationwide. The stated aim is to concentrate resources on the best-performing outlets and improve operational efficiency. Gifi explains that this will enable it to better meet the changing expectations of its customers.
Already financially restructured in January 2024, Gifi had obtained debt rescheduling thanks to the intervention of the Comité interministériel de restructuration industrielle (Ciri). This government assistance enabled the group to temporarily ease its financial obligations. At the same time, Philippe Ginestet, who founded the company in 1981, stepped down from operational management, leaving the reins to a new management board.
But these efforts have not been enough. The company suffers from increased competition, notably from chains such as Action or Maxibazar, and more recently from e-commerce platforms such as Temu. Added to this is a change of IT system in 2023, which has seriously disrupted the group's operations. Despite sales of 1.2 billion euros in 2024, Gifi recorded a loss for the second year running, the first since its creation.
The employees concerned will benefit from support and redeployment measures, although the precise details have yet to be worked out. The company has undertaken to offer personalized support, but this will not lessen the social shock of such an announcement in the towns affected.
Despite a network of over 570 stores in France and estimated sales of 1.2 billion euros, Gifi needs to reinvent itself. The company is focusing on revising its product offering, adjusting its pricing strategy and optimizing logistics. A strategic steering committee has been set up to lead this transformation, with the help of industry experts.
The outlook for the company remains unclear. There have been internal rumblings of a resale of the company, proof that the situation remains critical. The safeguard plan presented to the unions this week aims to preserve what can still be preserved, by refocusing the business on the most profitable areas.
The closure of these three stores in the Paris region illustrates a difficult period of adaptation for the brand, which is now seeking to regain its place in an increasingly competitive discount market. These closures mark a turning point for Gifi in the Paris region. By downsizing, the chain hopes to stabilize its finances and face the competition more calmly. But with three closures in densely populated towns, the signal sent to consumers and employees alike remains worrying. Gifi's future will now depend on its ability to reinvent its business model, in a discount sector undergoing radical change.
