On Thursday, April 3, 2025, GiFi, a prominent discount store chain in France, announced significant layoffs and closures as part of its ongoing efforts to stabilize its operations. The company revealed plans to eliminate approximately 300 positions, which equates to 5% of its total workforce of 6,000 employees. This decision comes amid challenging economic conditions and intense competition within the retail sector.
The announcement detailed that 186 of these job cuts would occur at GiFi's headquarters in Villeneuve-sur-Lot, located in the Lot-et-Garonne region, where the company employs 730 people. The remaining 116 positions will be eliminated across 11 stores that are set to close, as they have "not been able to be revived or taken over," according to a company statement. These stores are spread across various locations, including Lyon, Thiais (Val-de-Marne), Stains (Seine-Saint-Denis), Pontault-Combault (Seine-et-Marne), Toulouse, Neuville-en-Ferrain (Nord), Saint-Claude (Jura), Saverne (Bas-Rhin), La Ferté Macé (Orne), Tonnerre (Yonne), and Besançon.
This restructuring move follows a financial overhaul that GiFi undertook in January 2025, during which the company secured a financial support plan from its banks. This plan was contingent upon the implementation of a new governance structure. Philippe Ginestet, the founder of GiFi, aged 70, stepped back from operational management, transferring control to a board of directors. This shift aimed to inject fresh leadership into the company, which has faced mounting pressures from competitors such as Action, Maxibazar, and online platforms like Temu.
GiFi's financial struggles have been exacerbated by a problematic change in its IT system in 2023, which hampered stock visibility and management capabilities. Despite generating a turnover of 1.2 billion euros in 2024, the company has reported losses for the past two years, marking its first losses since its establishment in 1981. In March 2024, GiFi had already sought assistance from the Interministerial Committee for Industrial Restructuring (Ciri) to reschedule its debt.
Philippe Brochard, who is leading the transformation plan, expressed optimism about GiFi's future. He stated, "We believe in the renewal of GiFi, which is an essential brand in the discount market in France, with strong recognition in a growing market (+8% per year)." Brochard emphasized the brand's potential, noting that 80% of French people live within 20 minutes of a GiFi store, which positions the company favorably in terms of accessibility.
The closure of the 11 stores is part of a broader strategy that includes 15 initiatives aimed at revitalizing the brand. These initiatives will focus on repositioning product offerings, enhancing price competitiveness, and improving logistics and marketing strategies. GiFi aims to implement these changes effectively to yield results by the end of 2025.
The company's decision to proceed with these layoffs and closures has been met with mixed reactions. While some labor union representatives have expressed solidarity with the management during this difficult transition, they remain vigilant about the impact these decisions will have on employees. The CFDT union has indicated that they will be watchful and uncompromising regarding the consequences of these purely financial agreements on employment.
As GiFi navigates these turbulent waters, the focus will be on how effectively it can adapt to the changing retail landscape and regain its footing. The competition from discount retailers and online platforms continues to pose significant challenges, and GiFi's ability to innovate and streamline its operations will be critical for its survival in the coming years.
In summary, GiFi's announcement of layoffs and store closures marks a pivotal moment for the company as it attempts to restructure and emerge from a period of financial difficulty. The emphasis on innovation and strategic changes could potentially set the stage for a turnaround, but the road ahead remains fraught with challenges.
