Another European hard-discounter is set to conquer Switzerland.
The successful Dutch-born chain, Action, is soon to open its first Swiss branch in Zurich – but the company plans further shops throughout the country.
It already has a loyal Swiss user base – one near Basel, but on the German side of the border, does a solid trade from near-by customers.
Action stocks household items at rock bottom prices. It achieves profitability by a sophisticated distribution system and never stocks anything fresh – so doesn’t need a cold-chain.
It’s a format that's proving highly successful. In the last ten years, sales have gone from EUR 718m to EUR 14bn.
Will it work in Switzerland? Analysts point out salaries are higher – so its prices will have to be higher than in other countries, and another says its products are ‘shoddy.’
The Blick newspaper says it’s like a Chinese online retailer in physical form.
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