Despite Corona, the dealer from Holland opens new branches. And above all relies on impulse purchases
Action boss Boyko Tchakarov
Austrians go shopping less often since the Corona crisis. But once they are in a store, they tend to spend more there than before. Average receipt sales are increasing. This is confirmed by Boyko Tchakarov, Managing Director of Action Austria, along with many other retailers.
The Dutch discount chain opened its 69th branch in Austria last week – and thus its 15th store this year. Despite the pandemic. “We are acting countercyclically,” says Tchakarov, who previously worked for the fashion chain C&A and the discount store Lidl.
Vendor's tray
Pretty much everything is sold at Action, from screwdrivers to shower gel – with the exception of fresh food. With this concept, the Dutch have established a branch network with around 1,700 locations in eight European countries and most recently generated an annual turnover of five billion euros. For comparison: five years ago the number of branches was 650, the net sales at that time just below the 2 billion euro mark. Side effect: the larger the purchase quantities, the lower the cost price, the more aggressively the retailer can ultimately appear on the market.
Action branch
There are still impulse purchases
The corona crisis seems to play action into the hands. “People are becoming more cost-conscious across all income groups,” says the native Bulgarian Tchakarov. That doesn't mean that consumers don't get carried away with impulse purchases, which make up a large part of Action's business. From decorative items to light bulbs that appear particularly cheap.
The fact that people currently spend more time at home is also reflected in the products they buy: “This year we sold seven times as many garden solar lamps and twice as many sports equipment as Kettle Balls than last year.”
Anyone wondering where the central warehouse is, from which the Austrian locations are supplied, has to look beyond the borders. There is no warehouse at all in Austria, deliveries come from Germany and Poland. That should change soon, with the opening of a new central warehouse in Bratislava.
Delivery from Poland
Central delivery is part of the recipe for success, says the discount manager. It's about keeping costs as low as possible. Tchakarov: “With us every cent is turned over three times.” This is also reflected in the choice of branch locations: “You will never find us on Kärntner Straße, we concentrate on locations that support our low-cost pricing policy,” says the discount -Manager.
The Dutch group now employs more than 1,400 people in Austria, most of them – as is usual in retail – on a part-time basis.
