There seems to be no end to the success of retail Action, also internationally. The group saw sales rise by 30 percent last year to 1.5 billion euros, and the company gets more and more affiliates to.
A year earlier, also grew sales of Action already by 30 percent. The company recorded in 2014 a net profit of 70.4 million . Action is making so successful? This has three reasons.
1. Low prices
Who ever been in at discounter Action can not deny that the prices of items are low, much lower than at traditional stores like Blokker and Hema, and will keep customers coming back.
The bargains are available from Action, have especially at the beginning to ensure that consumers were not enough of the store. Once you have paid so little for certain products will not soon be paying more at another store.
Action CEO Ronald van der Mark estimated earlier that such Action 35 percent cheaper than the competition.
2. Surprise Effect
It’s not just the low prices that ensure that customers keep coming to Action. They are also the many new products that the store every week is completed. Every week hundred to one hundred new items in the Action branch.
As a product that is now on the shelves next week road may be, consumers are inclined to faster Buy. “The Power of Action is that they make low-cost shopping fun,” said retail expert Rody Frequin earlier against magazine Elsevier . “They create a surprise effect.
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3. Recession
Action soon opened, and still is, one after another branch in the Netherlands. Meanwhile the company is also active in Belgium, Germany and France. In particular, the economic downturn has caused Action and other discounters were able to grow so fast. And it’s not just the low prices.
Owners of retail offerings for the crisis preference to stores with brand recognition, such as H & amp;. M Today, landlords just glad if someone wants in the property
Last year opened Action 108 new business , of which 21 in the Netherlands. 25 in Belgium, 23 in Germany and 39 in France. Action now has a total of more than 500 stores and expects to open more branches.
Cheap
And last is the question: how is it that Action is so cheap? Retail chains like Action buy major parties . Going most suppliers of a decrease of 5,000 or 10,000, Action buys at one time 250,000, but then for a lot lower price. Even brands like Coca-Cola are willing to sell their products at a fraction of the price.
There are also products that have a short life cycle. The formula of a particular cream is changed or the packaging, while the manufacturer is still producing the old. This ‘old’ products do not have drugstores, but chains like Action does.
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