Action continues its compounding growth throughout Europe

The Dutch non-food discounter Action is hailed by its main investor, 3i Group, as the fastest-growing non-food discounter in Europe. A strong contender for Action is the Danish Normal, which is also growing fast. All in all, Action continues to produce stunning results quarter after quarter.

At the start of the year, Action demonstrated its prowess with a remarkable 21% revenue growth, a feat achieved by the opening of an impressive 42 new stores. This strategic move, akin to the approach of its competitor Normal, has been a key driver of Action's success. The company’s ability to rapidly expand its network, a trend that shows no signs of slowing, was evident last year when it unveiled 34 new stores in the first quarter.

Rapid growth was not achieved solely by opening many new stores. Like-for-like (LfL) growth was strong, with +9,8%.

Action already operates in 12 countries, opening three stores in Portugal early this year. The company sees “white spot” potential for around 4,700 European stores. Currently, Action has 2,608 stores in continental Europe. Action is planning to open Switzerland and Romania as new markets in 2025.

Strong revenue growth is accompanied by healthy and increasing profitability. Action reported a +29% jump in operating EBITDA, which put the EBITDA margin at 15,6%, an all-time high for the company. The management of the 3i Group continues to emphasise how Action's growth is compounding into ever-higher profitability.

One can see the compounding in action when the most recent results are compared to 2019 figures. Since then, the EBITDA margin has grown by 50%, and the revenues have grown by more than 100%. Not many retailers worldwide can report this kind of progress.