December 4, 2023

Holland-Discounter establishes a branch in Switzerland

The rapidly expanding Dutch chain has established a branch in Basel. This was reported by the newspaper “Argauer Zeitung”, which did not receive any response from the opponent. The founding of “Action Switzerland GmbH” strongly indicates that there will soon be the first branch of Action in this country.

The chain was founded 30 years ago, and has about 2,300 branches in eleven countries. There are 500 stores in Germany alone. This year, the Dutch chain expects sales of more than 10 billion euros. The profit margin is more than 10 percent.

Action’s recipe for success is to offer its goods at cheap prices, with almost a third of products costing one euro or less. Non-food items of daily use such as pharmacy goods, confectionery, office supplies, decorations and textiles are offered. There is no fixed offer, it changes regularly.

The chain is able to offer low prices thanks to its purchasing power, meager logistics and rudimentary store furniture. In addition, large marketing expenses and online sales are avoided.

It remains to be seen whether the business will be able to gain a foothold in Switzerland with the same concept as in other countries. Aldi and Lidl also wanted to compensate for primitive facilities with low prices. But this concept did not work, and they had to develop themselves and become more Swiss.