High inflation has made consumers much more price conscious and discount chain Action is said to have benefited from this. This applies to both stores in the Netherlands and other European countries.
Action saw turnover increase by more than 30 percent to almost 8 billion euros in the first nine months of this year. This was partly due to the openings of new stores, but also to organic growth of existing stores. Excluding newly opened stores, turnover increased by more than 19 percent in the first nine months of 2023.
Action reported no profit figures in Thursday’s financial update.
In the first nine months of this year, Action opened 153 new stores in various European countries, bringing the total number of stores to 2,416 in eleven countries.
Price reductions at Action
Action has been able to lower its prices since the summer of this year due to lower costs for raw materials, transport and energy.
“Offering products at the lowest possible price is in our DNA. Since last summer we have seen that the trend of higher purchasing prices has reversed, which has allowed us to reduce the price of more than 900 items (15 percent of our range), sometimes by more than 10 percent,” CEO Hajir Hajji said in a press statement.
Hajji indicates that certain costs such as rent and labor are still rising, but on balance Action can reduce the prices of various products. “Our customers will continue to benefit from more price reductions for at least the rest of this year and therefore also during the holidays.”