The retail chain is now thriving as price-conscious consumers try to save money. The company’s sales volume increased by more than 30 percent in the first nine months, partly due to the opening of stores in Germany, Austria and Italy.
Action, which started in the north of the Netherlands, now has 2,416 stores in eleven European countries. The company has already opened 153 new stores this year in Rome, Düsseldorf, Vienna and elsewhere.
Turnover rose to €7.9 billion not only because Action had more stores. If you ignore that, sales volume has actually increased more than 19 percent this year. According to Action, price-conscious consumers come to stores more often and make more purchases.
The company does not share earnings numbers, but says the result is developing positively, just like sales volume. The measure also does not explain the extent to which price increases have boosted sales volume in the past nine months.
CEO Hajar Haji announced that it has become possible to reduce prices by 15 percent of the range since the summer. This is because transportation and energy costs are also falling. Rent and staff costs continue to rise.
At the end of September, the curtain came down on a competitor to Action: the deal chain Big Bazar. That company had difficulty paying rent on retail properties for several months. In fact, Big Bazar has seen consumers spending less due to inflation. At the same time, rent, energy and wage costs increased.
Discountketen Big Bazar definitief failliet na meerdere reddingspogingen
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