Action thrives as bargain hunters flock to stores in uncertain economy

The bargain store chain Action is continuing to grow in Europe due to the economic uncertainty on the continent. The Dutch company opened 125 new stores this year. Existing stores have also experienced an increase in customers. According to the company’s CEO, Hajir Hajji, many people are interested in the bargain products at Action as the economic climate is challenging for them.

Action’s revenue grew by nearly 18 percent in the first half of the year, reaching 7.3 billion euros. The revenue growth is mainly linked to the arrival of new stores. When looking only at stores that were already open during the same period last year, sales grew by just under 7 percent.

Action currently has 3,043 stores in 13 countries. The 3,000th store opened on June 5 in Italy. The business opened its first store in Switzerland earlier this month. The opening of the first location in Romania is scheduled for September 24. Action expects to add around 370 stores in total this year.

Action marked the milestone of 3,000 stores by giving employees a one-time net bonus of up to 300 euros and a special anniversary gift. This did impact profits. According to British owner 3i, the company incurred a one-time expense of 26 million euros, mainly related to the bonus. Adjusted for taxes and other factors, however, profits still rose, from 843 million euros a year ago to 980 million euros.

3i CEO Simon Borrows said back in May that Action was able to purchase goods more cheaply as a result of the trade war. He noted that U.S. import tariffs had prompted Chinese suppliers to offer better deals to European retailers. According to him, Action aims to pass those discounts on to consumers as well.