NOS News•today, 10:54
Action once again saw a sharp increase in turnover in the first quarter. The stores selling mainly cheap household items sold for just over three billion euros. That is an increase of almost 21 percent compared to a year earlier.
The growth is largely due to the opening of new stores in Europe. 42 Actions were added in the first three months of the year. Without the new branches, growth was 9.8 percent. Profit figures have not been announced.
Action’s growth in the past quarter was slightly less than a year earlier. Then total sales increased by more than a third.
Now also in Portugal
The group with Dutch roots now has 2,608 stores in 12 European countries. The first store was opened in Portugal in February. Most stores are in France, Germany and the Netherlands.
Action focuses on the bottom of the market, with a lot of cheap stuff from China and a quickly changing range. Two-thirds of the products cost less than 2 euros, the company says.
In the first months, Action reduced the prices of more than 1,000 products. The company has benefited from high inflation in recent years, causing many people to look for alternatives to the increasingly expensive products in supermarkets.
Started as a shelf stocker
The roots of the group lie in Enkhuizen, where two entrepreneurs started a shop in 1993. They sold cheaply purchased lots there, from scouring sponges to pans to tableware. It was a success and they quickly opened new businesses in the area. In the years that followed, the company continued to grow and in 2005 the first store abroad was opened.
A majority of Action shares are now owned by the British investment group 3i. The CEO is the Dutch Hajir Hajji. She started at the age of 17 as a shelf stacker in one of the first Action stores and quickly made a career in the company.
