Discount Variety Retail Chain Action (owned by the UK PE firm 3I Group) is experiencing a new growth spurt this year: the discounter recorded more than 30% more turnover in the first nine months. The chain is now also lowering the prices of products.
Towards 2,500 stores
Net sales have risen by 30.5 % to 7.9 billion euros so far this year. This is due to Action's continued expansion: a further 153 new stores were added up to and including September, bringing the total number of stores to 2,416 in 11 European countries. There were also some milestones: in Germany, the discounter opened its 500th store, the 100th store in Austria and the 50th store in Italy.
Nevertheless, turnover also increased by 19.2% on a like-for-like basis. The number of customer visits in particular increased, partly thanks to price reductions in the product range. Once again, CEO Hajir Hajji is announcing further price cuts. "Since last summer, we have seen that the trend of higher purchase prices has been reversed, as a result of which we have already been able to reduce the price of more than 900 items (15% of our range), sometimes by more than 10%."
Because Action has been around for thirty years now, employees received an anniversary bonus. In September, the chain will also launch its first circular product in its Benelux stores: a storage basket made from recycled plastic from its own operations. More launches of circular products will follow later.
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