Store Action: prices, products, destocking
For some, Action is the temple of bargains with its discounted prices and new products offered every week. How to explain the success of this brand?
Action has become the favorite brand of the French in 2023, according to a survey by Ernst & Young. With its varied products sold at low prices, Action, a Dutch brand that arrived in France in 2016, continues to rock the house. Products for the home, food, toys, decoration, hygiene and maintenance products…: you can easily find what you’re looking for at Action! But how can we explain this success which has lasted for 7 years?
Action: quality products at low prices all year round
According to NielsenIQ, 8.1 million households have shop in stores Action since the beginning of the year, i.e. 1.2 million more than in 2022. A record figure, especially in this period of inflation, which forces households to tighten their belts! The success is such that Action inaugurated its fiftieth store with an area of 55,000 m² at the end of 2022 in the northwest of Marseille. In all, the Dutch chain has 700 points of sale in France, as revealed by the magazine 60 Million consumers.
“For all products over 20 euros, the referencing must be validated by the general management”, we explain internally to our colleagues. Action therefore leaves nothing to chance to fill its 14 departments. The Action network has even developed 72 own brands (Superfin, Mini Matters, Alvira, Max and More, Lab31) at unbeatable prices.
Why go to Action?
However, only 6,000 articles are referenced at Action against 30,000 in a hypermarket. But the price is so attractive and the range of products so wide that it fills the gap: 1500 products sold at Action are less than 1 euro !
“In the concept of the sign, the units of need are determined in advance and always filled by different suppliers. While in other low-cost brands, the products change according to destocking opportunities »notes the journalist specializing in consumer goods Olivier Dauvers.
Why are the prices low at Action?
If Action offers such attractive prices, it is because the brand saves money on different levers, as the magazine indicates. 60 Million. “Delivery trucks have a double deck for a loading capacity that can transport 60% more goods compared to conventional trucks: the same truck can thus deliver up to three stores, (…) the communication budget is reduced almost to the distribution of the national prospectus”can we read.
Also, Action does not sell fresh food and few perishable products, which reduces possible losses and storage costs (refrigeration).
But the strength of Action lies above all in its arrivals every Wednesday and the presence of brands appreciated by consumers, whose products are sold off. “Every week 150 to 200 new products arrive to be installed just after entering the store. the presence of major brands that the discounter knows how to negotiate outside the French market. Action works with 400 big names (Haribo, Bic, Le Petit Marseillais…). These are parallel imports: the products may have different packaging (check the price per liter or per kilo, because not everything is a good one”.
🛒 Increasing attractiveness for retailers @lidlfrance And #Stock pic.twitter.com/LedYfWqJZI
— NielsenIQ France (@NielsenIQFrance) April 12, 2023