Discounter Action sees sales surge after store expansion

European discount retailer Action delivered sales growth of 20.9% in the first quarter, the chain's private equity owner 3i said on Thursday, as the company expands its store network and attracts more people shopping on a budget. Action sells everything from packaged food and soft drinks to toys, kitchenware, and clothing.

European discount retailer Action delivered sales growth of 20.9% in the first quarter, the chain's private equity owner 3i said on Thursday, as the company expands its store network and attracts more people shopping on a budget.

Action sells everything from packaged food and soft drinks to toys, kitchenware, and clothing. It says two-thirds of its products cost less than 2 euros, and it offers 1,500 items for less than 1 euro. Action's net sales rose to 3.004 billion euros ($3.23 billion) in the first quarter from 2.485 billion a year earlier, and like-for-like sales grew by 9.8%. The chain has stores in 12 European countries, having opened its first store in Portugal in February after adding 303 new stores overall last year.

Action's largest store network is in France, with Germany and the Netherlands also core markets. 3i said Action generated a gross investment return of 3.718 billion pounds, or 33%, in the financial year ended March 31.

"Action's compelling growth story continues to be a major driver of the Group's return," 3i Chief Executive Simon Borrows said. ($1 = 0.9314 euros)

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