Non-food discount retailer Action reached the five billion euro turnover mark last year. Owner 3i now estimates the discounter’s value at 10.25 billion euros and calls the coronavirus crisis just a “short-term disruption”.
Italian expansion postponed
Last year, Action achieved a turnover of more than five billion euros, 800 million more than in the previous year. This is largely due to its rapid expansion, but on a comparable basis turnover still increased by 5.6 %. Gross profit (EBITDA) grew by 20 % to 541 million euros in 2019, the Dutch newspaper Financieele Dagblad reported.
The compulsory closing of stores in most countries during the coronavirus pandemic, with the exception of the Dutch home market, nevertheless threw a spanner in the works this year. Action is estimated to have been worth 10.25 billion euros by the end of 2019 according to 3i, but due to Covid-19 the owner does not expect a significant increase in value this year.
Nevertheless, the investment group calls the coronavirus crisis just a “major short-term disruption”. In view of the great hustle and bustle at the reopening of the Belgian stores last week, this may well be true. Virtually all 1,576 stores have now been reopened, but the launch of 240 new stores and the expansion to Italy and Czechia have been postponed. Action had also announced in March that it would temporarily pay its suppliers later, but this measure was reversed after it was widely met with critique.
