Action Grows Fast as Shoppers Seek Budget Deals

Dutch discount chain Action continues its fast-paced expansion across Europe, fueled by growing demand for budget-friendly products in uncertain economic times. The company opened 125 new stores this year, and customer numbers also rose in its existing locations. According to CEO Hajir Hajji, many shoppers are drawn to Action's affordable prices as the economic climate remains difficult for many households.

 

4 months Ago


In total, Action now operates 3,043 stores across 13 countries, with plans to open around 370 new locations by the end of the year. The chain's 3,000th store opened on June 5 in Italy, and the first Swiss store launched earlier this month. Action's debut in Romania is set for September 24.



Revenue Climbs, Profit Still Strong Despite Bonus Payout
Action's strong growth translated into financial success. The company's revenue reached 7.3 billion euros in the first half of the year, marking a nearly 18% increase.



This growth mainly came from new store openings. When comparing only the performance of stores that were already open last year, sales increased by just under 7%.

To celebrate the opening of the 3,000th store, Action gave its employees a one-time bonus of up to 300 euros net and a special anniversary gift.

This celebration resulted in a 26 million euro one-time expense, as reported by its British owner, 3i. Despite this, Action's profits rose from 843 million euros last year to 980 million euros this year after tax adjustments.

Cheaper Imports Boost Retail Advantage
Back in May, 3i CEO Simon Borrows explained that Action benefited from the ongoing trade war, particularly U.

S. import tariffs that led Chinese suppliers to offer more attractive deals to European buyers. According to him, Action has used this advantage to keep its prices low and pa.

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