It’s our simple, straightforward yet flexible business model that makes Action unique: we work hard to source good quality products, invest in our supply chain, and continuously work to make those products more sustainable. Over the past three decades, we have grown from one 60m² store to 2,566 stores welcoming 15.3 million customers weekly.

We’re able to offer good quality products at the lowest price because:

• We buy in volume.

• We keep our costs low. We have very few high-street stores and do not spend much on marketing.

• We have a simple, efficient and scalable business model: one brand, one store format and one way of working. This allows us to keep our processes simple and efficient.

• Our assortment changes regularly. Only a third of our products are ‘fixed’. We introduce 150 new products a week, allowing us to remain relevant for our customers and meet changing demands quickly.

With this approach, we ensure cost consciousness remains in our DNA and we can pass cost savings on to customers by offering them the lowest price. Throughout the second half of 2023, we reduced prices of more than 2,500 items across our product range.

We buy products from suppliers: wholesalers and importers, or directly from producers. Our buying teams are central to what we do at Action – they buy good quality products at the best prices. And because they know our customers, our buyers are able to respond quickly to changes in customer demand.

Which is why we work through long-term relationships, built on trust. We source 49% of our products from China, where available production capacity is large enough to meet our product and quality standards. Of the rest, 6% comes from elsewhere in Asia and 45% from suppliers in Europe.

Our products are then shipped to Action stores via our network of distribution centres. Currently, we work with 686 suppliers across Europe and Asia, who connect us to 3,054 factories. We want to continue diversifying our supply base – this means adding new suppliers and expanding what we call proximity sourcing – i.e., buying from suppliers closer to our stores.

We have continually delivered net sales growth in recent years. In 2023, net sales increased by 27.8% compared with the previous year, mainly as a result of like-for-like sales that exclude the effect of new store openings, which were up 16.7% compared with 2022.

We do this in two ways: first, by maximising our positive impact – i.e., by offering good quality products at the lowest prices, for example, or by creating jobs. Second, by keeping down the adverse effects our business may have – by reducing our environmental footprint and working with our partners to minimise human rights risks from our supply chain.

Below, we have included an illustration visualising our value creation model, comprising three main parts:

• What we need: i.e., the resources and inputs we draw from society to operate our business – from financial capital and natural resources to our employees’ time and skills

• What we do: i.e., our approach to business through our buying teams, distribution centres and stores

• Finally, what impact we have – through our business – on customers, employees, shareholders and other business partners, as well as how we support local communities and reduce our impact on the environment.

We want our business to contribute positively to society.

We have a clear strategic framework, ensuring our approach to business remains simple and consistent. This framework provides the basis for further growth in our business.