Full steam ahead for Action despite lower turnover increase | RetailDetail

Full steam ahead for Action despite lower turnover increase

Full steam ahead for Action despite lower turnover increase
Foto: defotoberg / Shutterstock.com

Action’s turnover grew 28 % last year, to 3.4 billion euro. The chain has a more international presence, but its growth pace is below that of previous years, when growth exceeded 30 %.

 

Slower turnover growth

Discount store chain Action’s turnover growth comes solely on the back of new store openings, because a like-for-like comparison with stores that have been around for more than 12 months, only resulted in a 5 % turnover increase. That does make sense, considering the retailer opened 243 stores in seven European countries last year and will continue to grow rapidly. The chain now has about 1,100 stores and more than 40,000 employees. 

 

It will add hundreds of stores again this year, even more than last year if everything goes well. The main focus will be France and Germany and in order to support its growth, it will also build four more distribution centers, doubling its current level.

 

Organic growth is also slowing down however: the 5 % like-for-like turnover increase was lower than a year ago, even though the chain emphasizes that it still outperforms the market. Operational profit grew a quarter compared to 2016, reaching 387 million euro. Operational margins, at 11.3 %, is somewhat lower than last year.

 

Action competes with Decathlon

CEO Sander van der Laan says he is happy with the results. The formula, which consists of a “broad, surprising and ever-changing product range”, is clearly popular. He also states that Action has become an international company, with about two thirds of its store network outside of the Netherlands. Remarkable is that French turnover surpassed Dutch turnover for the first time, even though the Netherlands still houses more stores.

 

The discount chain sees plenty of potential turnover in discount sports clothing and equipment and that is why it will compete with sports chain, selling cheap sporting shoes, yoga mats and fitness equipment from now on.

Questions or comments? Please feel free to contact the editors


Gerelateerde items

Stop overregulation blocking retailers delivering value for consumers

20/04/2018

(content provided by EuroCommerce) In an initial response to the Commission Communication: A European retail sector fit for the 21st century, published today, EuroCommerce approves of the Commission's stance against overregulation.

The Future Of Shopping wins Management Book of the Year award

20/04/2018

RetailDetail can proudly announce that “The Future of Shopping: Waar iedereen retailer is” (The Future of Shopping: where everyone is a retailer), written by Pauline Neerman and Jorg Snoeck, is 2018’s management book of the year.

Heineken and Bavaria seek fortune outside of Europe

19/04/2018

Even though the European beer market continues to struggle, Dutch brewery groups Heineken and Bavaria have published growing turnovers. Bavaria set a record turnover, Heineken raised its turnover 4.3 % in the past quarter.

100 million Prime subscribers for Amazon

19/04/2018

Ecommerce giant Amazon surpassed the 100 million Prime subscriber mark, just one of the many milestones CEO Jeff Bezos mentioned in his annual shareholder briefing.

Danone boasts strongest like-for-like turnover increase in past five years

19/04/2018

French food giant Danone’s first quarter was an impressive one: like-for-like turnover grew 4.9 %, its best performance in the past five years.

Distributors and transport industry demand cleaner trucks

19/04/2018

35 companies, including Colruyt, Carrefour and Ikea have asked Europe to force truck manufacturers to lower their emissions 25 % by 2025. “Totally unrealistic”, the manufacturers’ spokesperson said.