
Giants of retail are becoming insolvent and bankrupt under the pressure of low-cost store discount and internet trading platforms. In considering the increasing popularity of such retailers, as Action and Temu, historic brands have problems in remaining in the market.
- After GiFi came the rail to the next trade brand, which must conduct a thorough reorganization, in order to remain in a competitive market.
- GiFi has behind its clumsy takeover of Tati in 2017 year and the difficult years of pandemic Covid-19. It is also affected by fierce competition from such discounters, as Action.
- Competitive stores have disturbed the balance in the sector. In January 2024 the president
Stokomani announced reorganization, to face competition from the Action website and Them.
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After GiFi came the counter to another trade brand, which has to conduct a thorough reorganization, to stay in a competitive market. It is Stokomani, a French network of shops. A retailer offering products at discounted prices, established in 1961 year, has over 150 shops in France. Sells products in five categories: fashion, health and beauty, household articles, toys and seasonal products.
GiFi is a French chain of discounter stores, with 700 shopping places in France, Italy, in Switzerland, Spain, Portugal, and even Côte Ivory Coast, employing over 6.5 thousands. people. For decades it has established its position in the market. In 2024 year known for low prices and variety of products the brand has bankrupted after 43 years of operation and has been sold by the owner.
The trading giant has been behind the clumsy takeover of Tati in 2017 and difficult.years pandemic Covid-19. It is also affected by fierce competition from discounts, as Action – informed capital.fr. In 2024 year the company recorded a turnover exceeding a billion euros. The holding company also used of a loan in the amount of 100 million euro, which has been pledged on real estate. This was not enough, to refill the cash and stocks for early 2025 year.
Happily, thanks to the financial agreement obtained with believers, GiFi can breathe with silence. However, it is closing one two warehouses and centralizing its operations in Venette, and also releasing 50 employees on the power of the collective work agreement. In order to guarantee its sustainability, the brand will also have to implement its three-year strategic plan of reconstruction, designing into its new business model and organizational structure.
Stock in total reorganization
The market of discounters has long dominant position remained traditional brands offering consumers attractive prices on many products. However the emergence of new, extremely competitive players will disrupt the balance in the sector. In January 2024 year the president Stokomani announced reorganization, to face competition from the Action website and That – did melts.fr.
Thanks to its popular store Action, the network of non-food discounters, has gained customers wanting good bargains, a that, Chinese gigant e-commerce, offers unbeatable prices on the internet. These brands benefit from optimized logistics and extremely low costs of production, which makes life difficult for traditional networks.
Stockholders must adapt their strategy, to protect their company from deterioration. Actions are involving the head office and logistics. Two warehouses located in Creil and Verneuil-en-Halatte will be closed, because to date they have only used 40% of their capacity. Their activities will be centralized in one location – in Venette, to which all interested employees will be transferred.
The main office, which includes today three locations at Creil, will be centralized in one department, with the purpose of optimizing costs and increasing internal efficiency. Education will be along 50 of 240 job positions . Reduction of staff is to be based on the collective work RCC, that is a system based on volunteerism.
Plan competition against Action and Them
The goal of reorganization is to achieve efficiency, to be safe.Investing the savings in lower prices. In accounting for increasing consumer demand for and lower prices Stokomania must face the competition, if wants to remain in the market – informs melts.fr. The problem is that purchasing habits have in last years changed significantly. Customers, after some years of inflation, are more sensitive to promotions and discounts of prices. Action and this, thanks to lower margins and power logistics, attract today most buyers looking forgoodbargains.
Ifbrands,likeStokomaniandGiFi,wantto survive,theymustproveto theircustomers,thattheycanstillfindintheirstoresrealbargainsatlowprices,guaranteeingonegoodqualitytoprice ratio.Thegoodconceptistogetbigbrandsandat the same timeintelligentlyusingpromotions,yes,sothatyoudon’tgetabsorbedbya waveofultraaggressivebates-advisequotedbycapital.frmarketexperts.
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