Action hasn’t reached its limit yet: potential for thousands of new stores

The somewhat disappointing quarterly results recently released by Action raise questions about the low-cost retailer’s potential, but CEO Hajir Hajji has no doubts: thousands more stores can be added in Europe.

Questions about the growth story

The pace slowed somewhat at Action last quarter: comparable sales growth was only 3.6%, which is less than half of what it was in the same period last year. Things are particularly challenging in France and Germany. The pace of expansion also seemed to stall somewhat, as the chain opened “only” 33 stores in the first three months of the year, while the target for the entire year was set at at least 400 additional stores in Europe. So there is some catching up to do.