The more misery, the better for the Action it seems. The bargain chain benefited fully from the energy crisis and high inflation.
Now that the consumer is turning down the thermostat because of the sky-high energy prices, the demand for things to feel comfortable is exploding. Plaids, slippers, electric heaters and, for example, candles flew out of the shops last year, Action announced.
Daily groceries are also becoming more expensive by the day. And the retail chain benefited from that. ,,Action has more and more loyal customers throughout Europe. In a year in which we saw purchasing power fall and prices rise, our customers appreciate the composition of our range, the quality, low prices and atmosphere in the store”, says Hajir Hajji, top woman at Action.
Especially the price has become important. “We see that consumer buying behavior is changing. He now looks much more: where can I shop the cheapest,” says a spokesperson for the chain.
And that is where Action comes into the picture when it comes to everyday items such as detergent, shampoo, toothpaste or toilet paper. “When we saw the first signs that customers came to us for daily items, we built up extra stocks,” said the spokesperson. As a result, Action was able to continue to meet the rising demand.
What do purchasing power, inflation and average income mean again? Read it in our economics glossary.
In addition, the chain benefited from the end of the corona measures. As a result, customers came to the store more. Total turnover in Europe increased by 30 percent to 8.9 billion euros. The existing stores saw turnover increase by 18 percent. The stores that were opened last year generated 12 percent extra turnover. Action does not provide separate figures for the Netherlands. But the turnover development is in line with the general development, according to the chain.
Action itself is also affected by inflation. As a result, products in many cases also have to be purchased more expensively. “But we do not fully pass on the cost increase to the consumer,” the spokesperson assures.
Action has noticed that the store is attracting an increasingly diverse audience. “The concept of ‘discounter’ has been accepted in the Netherlands. Young and old, rich and poor shop with us now. We are getting more and more new customers and we see that existing customers are buying more from us.”
The expansion of Action will not come to an end for the time being. Last year, 280 new stores were added. This brought the total to 2263 stores. This year the chain will start in Slovakia.
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