Netherland-based, variety discounter Action has experienced strong growth over the last 12 months.
As part of the quarterly results announcement from Action’s private equity owners, 3i, the company revealed sales had been driven by the opening of 257 new stores and the relocation/refurbishing of a further 50 during the year to 30 September 2018.
The new stores use some of the updated layouts and displays trialled in pilot stores we visited earlier this year. The total number of stores operated by Action is now 1,235 across seven countries.
New distribution centres to meet the growing demand
Supply chain and product availability have been real challenges for Action and had a direct impact on like-for-like (LFL) sales. This saw it report LFL growth of 3% in its three main markets; The Netherlands, France and Germany.
Action continues to expand the number of distribution centres (DC’s) (five currently) with three more due to open in 2019 and a further three to be opened in the following 18 months to keep up with the demand. The group took the decision to postpone the opening of 20 stores in France, initially planned for Q4 2018, to Q1 2019 in order to manage stock levels during the peak of sales period of December.
One-year anniversary in Poland
In October, Action celebrated its one-year anniversary in Poland, where it now operates 15 stores. In the meantime, the construction of the first distribution centre in the country has begun. It should support Action’s continued expansion and maintain its dynamic development in the Polish market. The distribution centre, once built, will be Action’s eighth and will offer a strategic location to support the supply of products in both Germany and Poland.
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