Naf Naf, a French women’s fashion brand, has announced a new job protection plan that will involve the closure of 17 stores in France. The move is part of a wider restructuring effort aimed at improving the company’s financial performance..
Naf Naf, known for its colorful and feminine designs, has been facing challenges in recent years due to changing consumer preferences and increased competition. In 2022, the company’s sales fell by 10%, and it recorded a loss of 15 million euros..
In response to these difficulties, Naf Naf has developed a new strategic plan that focuses on three key areas:.
1. Optimizing store network: The company plans to close 17 unprofitable stores in France, which represent approximately 10% of its total store count. This decision was made after a careful analysis of store performance, customer traffic, and local market conditions..
2. Strengthening omnichannel presence: Naf Naf will invest in its e-commerce platform and digital marketing initiatives to enhance its online presence and reach a wider customer base. The company aims to increase its online sales by 20% in the next two years..
3. Improving product offering: Naf Naf will focus on creating more contemporary and trend-driven collections that appeal to its target customers. The company will also work on improving the quality and sustainability of its products..
As part of the job protection plan, Naf Naf has committed to providing support to affected employees, including redeployment opportunities within the company or assistance with finding new jobs. The company will also work closely with labor unions to ensure a smooth transition process..
The restructuring plan is expected to result in cost savings of approximately 10 million euros per year. Naf Naf hopes that these measures will help it return to profitability and secure its long-term future..
In addition to the store closures, Naf Naf is also considering other cost-cutting measures, such as reducing staff levels at its headquarters and renegotiating rent agreements. The company is determined to take the necessary steps to ensure its survival in a challenging retail environment..
Despite the store closures, Naf Naf remains committed to its brick-and-mortar presence. The company believes that physical stores still play an important role in providing customers with a unique and immersive shopping experience. Naf Naf will continue to invest in its remaining stores and improve the customer experience through initiatives such as store renovations and personalized customer service..
The restructuring plan is a significant step for Naf Naf as it seeks to adapt to changing market conditions. The company hopes that these measures will help it regain its competitive edge and position it for future growth..
