Already 117 stores

This discounter is hitting Hofer, Lidl & Co hard

Without causing much of a stir, a relatively new big player is giving domestic discounters such as Hofer, Lidl and Eduscho/Tchibo a hard time. The Dutch company Action already has 117 stores in this country.

Since 2015, it has been opening one store after another without much fanfare. "Action currently has 117 stores in Austria and employs around 2,500 people," said Action Austria CEO Boyko Tchakarov. Nine new stores were opened in 2024 and 200 additional jobs were created. Action is majority-owned by the British private equity company 3i Group.

Battle for valuable market share
So-called non-food discounters such as Action, Woolworth, Tedi, Pepco and Kodi specialize in the retail of goods that cannot be consumed. They stock household goods and stationery, home textiles, fashion and decoration, toys and multimedia, leisure and sporting goods.

Action offers around 6000 products at low prices in 14 categories. A third of the range is fixed. For Hofer, Lidl and Eduscho/Tchibo, the loss of market share in the non-food segment is painful, according to market observers.

Major store offensive far from over
Action's turnover soared by around a quarter to 13.8 billion euros in 2024. In 2024, the discount retailer opened 352 stores across Europe and now operates 2918 stores in twelve European countries, the discount retailer announced on Thursday. The company does not disclose market shares or country-specific sales trends.

The turnover of Action Retail Austria GmbH amounted to around 348 million euros in 2023 and the net profit amounted to 8.5 million euros, according to the annual financial statements filed in the commercial register ("Wirtschafts-Compass").

Action's expansion is set to continue in Europe and Austria. In spring, the discount retailer will launch in Switzerland, followed by market entry in Romania in the fall. Further stores are to open in Austria. According to the Action Austria boss, the company is "always on the lookout for suitable locations". Across all countries, Action plans to open 1,300 to 1,400 stores between 2023 and 2026.