Compared to other retail companies, Action has achieved not only significantly faster but also highly profitable growth in recent years – something many fast-growing non-food online retailers have not been able to match. This demonstrates that brick-and-mortar retailers can also achieve above-average success.

From a consumer perspective, the product assortment and price levels play a crucial role. Ultimately, attractive assortments and low prices are what draw consumers into stores. The following section describes various assortment and pricing measures employed by Action.

Action’s assortment consists of 14 non-food categories (see Fig. 4), comprising around 6,000 products in total. Two-thirds of these product groups are frequently updated with new items – approximately 150 new products each week. About a quarter of the assortment, or as previously mentioned, 1,500 products, are offered for a maximum of one euro (Action, n.d.-a). In Switzerland, the company promises to offer 1,500 products for under two francs. Overall, only about 8 percent of the assortment costs more than five euros. In addition to its large non-food range, Action also offers a selection of beverages and snacks, consisting exclusively of packaged, shelf-stable products, which eliminates the need for fresh or refrigerated goods (Bachmann, 2024). Action offers 488 well-known A-brands alongside 73 private labels (Action, 2023). Notable brands include Coca-Cola, Philips, and Umbro.

Fig. 4: Overview of Action’s product assortment

The categories on the German website differ from the official product categories on Action’s international website (see Fig. 5). Instead of 14, there are 15 categories in Germany, with slightly different groupings. For example, the German website includes additional categories such as "Travel" and "School & Office", while the categories "Linen" and "Laundry & Cleaning" are missing. As of October 23, 2024, the German website lists 5,848 products. A detailed overview of how these items are distributed across categories can be found in Fig. 5.

As a non-food discounter, Action has set the goal of offering “high-quality and surprising everyday products at low prices” (Action, n.d.-b). Our analysis of the website reflects this. In total, 1,093 products (18.60% of the assortment) are available for under one euro. Furthermore, 4,589 products (approx. 78.47%) cost less than five euros, and only 372 items (6.36%) are priced above ten euros. Figure 5 provides a detailed breakdown of product groups. The three largest categories by number of products are "Home" with 1,061 items (18.14% of the assortment), "Personal Care" with 649 items (11.10%) and "Fashion" with 648 items (11.08%) In calendar week 43 of 2024, 114 products were heavily discounted due to weekly promotions. The in-store assortment may differ slightly from the online offering, depending on the size of each branch (Action, 2024).

Action’s assortment is characterized by a wide variety of low-price items under five euros, with a focus on non-food products (see Fig. 6). With weekly new arrivals and particularly affordable special offers, the company attracts customers to its stores and reinforces its low-price image. The large share of products priced under one euro further enhances this perception. In addition to its website, Action also offers a mobile app, where customers can browse the product catalog and view special deals – similar to the website.

To view upcoming weekly offers in the app, customers must make a purchase in a physical Action store and scan their digital loyalty card at checkout. After doing so, they gain one month of access to the next week’s offers in the app. This app is currently not available in Swiss app stores.

Many retail companies have developed a distribution system that combines physical stores with online shops. This approach is commonly referred to as omnichannel management. Changing consumer behavior demands such an omnichannel offering, as customers use both physical and digital sales channels. A modern retailer must therefore take both forms of distribution into account. But does this also apply to Action?

Anyone who visits Action online will find a list of all products and offers currently available in stores. The website also allows users to locate the nearest store and check product availability. However, there is no ordering function. Action deliberately chooses not to sell through an online shop, as doing so would result in significant financial losses. For this reason, the website cannot be considered a typical online shop – it is more accurately described as an online communication channel.

In this context, Action does not follow a traditional omnichannel strategy, where customers can shop both in-store and online. Online purchasing is not available at Action. This is primarily due to high delivery costs, which would be disproportionate to the average product price – often below five euros. Instead, the website showcases the assortment, promotes new products, answers questions regarding availability, and mainly focuses on highlighting the very low prices.

Therefore, we conclude that Action operates a modern but adapted form of omnichannel management. However, physical retail locations clearly remain at the core of the company’s distribution strategy.

One characteristic that sets Action apart from other non-food discounters lies in the constant change of its assortment. While competitors such as TEDi or Woolworth offer more than 3,000 items priced at one euro in the entry-level price segment, Action (see Question 3) limits itself to a total assortment of 6,000 items, of which only 2,000 belong to the standard assortment (WiWo, 2024). The remaining 4,000 items on Action’s shelves are regularly exchanged. On average, 150 new items are added each week in order, according to the company, “to remain relevant for our customers and to quickly respond to changing demand” (Action, 2023a). CEO Hajir Hajji refers to this as the “Action formula”, which contributes to the company’s current success and growth (Business Insider, n.d.).

To manage this assortment dynamic operationally and still operate profitably, an efficient supply chain and a standardised store concept are necessary (Action, 2023a; Action, n.d.-a). The assortment itself plays an important role in this regard, as it is 95 percent identical in all stores, which reduces procurement costs and benefits logistics (Meyer & Maros, 2024; Mitsis, 2023). We were able to confirm this after comparing the assortments of two stores in Germany and Austria (see Question 10).

Additionally, although the assortment in Germany includes products from 15 different product categories, offering a high breadth, the depth of assortment in individual product lines is quite limited (Action, 2023b; Bachmann, 2024). This, in turn, supports the quick sell-through of individual items, though it may lead to dissatisfaction among selective customers with specific expectations in terms of colours or sizes (Bachmann, 2024; Mitsis, 2023). To ensure this occurs as rarely as possible and that newly added products align with customer preferences, procurement plays a strategic role. Action conducts regular customer satisfaction analyses and surveys, including insights from various touchpoints throughout the purchasing process, to ensure ongoing assortment improvements based on current trends and customer preferences (Action, 2023c).

With the aforementioned frequent assortment changes, which ensure high relevance and up-to-dateness, Action hits the zeitgeist (referred to as variety seeking) and continuously offers customers a new and thus exciting shopping experience. The objective is clear: Action aims to maintain high store traffic. New products spark interest, and customers leave the store each time satisfied with one or more discovered bargains (Bachmann, 2024).

The main reasons for visiting Action are low prices, but also the perceived quality and wide selection appear to resonate with surveyed customers (Meyer & Maros, 2024). The concept is working and is reflected in steadily rising visitor numbers in now more than 2,600 stores. These stores are visited weekly by 17.3 million customers (Action, n.d.-b).

Action. (2023a). The Action Story. https://update.action.com/update2023/the-action-story

Action. (2023b). Action in 2023. https://update.action.com/update2023/action-in-2023

Action. (2023c). Taking Action – Offering affordable, good quality products. https://update.action.com/update2023/offering-affordable-good-quality-products

Action. (n.d.-a). Our distribution centers. https://company.action.com/this-is-action/our-distribution-centres/

Action. (n.d.-b). Company homepage. https://company.action.com/

Bachmann, D. (2024). Der Discounter Action erobert Europa im Sturm. https://www.nzz.ch/wirtschaft/action-der-discounter-erobert-europa-und-auch-die-schweiz-ld.1824145
 
Business Insider. (n.d.) Billig-Discounter Action in Deutschland: Mit dieser „Formel“ machte die niederländische Kette mehr Umsatz als Lidl. https://www.businessinsider.de/wirtschaft/handel/billig-discounter-action-macht-globus-lidl-konkurrenz-dank-action-formel/

Mitsis, K. (2023). Lohnen sich die Angebote? Billig-Discounter boomen - 3 große Ketten sind jetzt auf dem Vormarsch. https://www.focus.de /finanzen/news/geiz-ist-geil-billig-discounter-boomen-3-grosse-ketten-sind-jetzt-auf-dem-vormarsch_id_227360916.html  

Meyer, M, & Maros, K. (2024). «Extrem günstig» – sie shoppen heute schon bei Action. https://www.tagesanzeiger.ch/action-kinderspielzeug-und-haarspuelung-fuer-weniger-als-1-euro-479675927043  

WiWo. (2024). Aldi und Lidl verlieren Marktanteile an Action und Co. https://www.wiwo.de/unternehmen/handel/non-food-handel-aldi-und-lidl-verlieren-marktanteile-an-action-und-co-/30033280.html

Temu is known for its low prices and has already gained significant market share in Switzerland. With Action entering the Swiss market in April 2025, another low-cost competitor has arrived. This means that Action could also gain market share alongside Temu. To explore this, we compared prices at Action in Austria with prices at Temu. Prices at Action Austria are slightly higher than in Germany, which is why we selected Austria as the basis. This provides an initial impression of Action’s price competitiveness.

The price comparison between Action (Austria) and Temu (Switzerland) regarding entry-level pricing shows that a comparable shopping basket at Action (Austria) is on average 23 percent cheaper than at Temu (Switzerland). The price differences vary by product category (see Fig. 7). We chose the seven product categories shown in Fig. 7 because they are available in both Temu’s and Action’s product ranges and consist of basic products. The largest differences are found in the categories "Household" (-55%), "Office & School Supplies" (-54%), "Personal Care" (-52%), and "Garden & DIY" (-46%). Action (Austria) is more expensive than Temu (Switzerland) in the categories "Electronics" (+34%) and "Sports" (+13%). The two providers offer similarly low prices in the “Apparel” category, where Action (Austria) is 2 percent more expensive than Temu (Switzerland).

Fig. 7: Price comparison between Action (AT) and Temu by product category (entry-level)

This price comparison was conducted between October 15 and November 15, 2024. It represents a snapshot in time, as prices change regularly at both Action and Temu. Furthermore, we considered pricing levels in this comparison. The comparison is based on entry-level pricing, i.e., the lowest listed prices for comparable items were selected for each retailer. We also looked at the mid-range price level, which lies between the lowest and highest prices for comparable products. Here, Action (Austria) turned out to be, on average, even 46 percent cheaper than Temu (Switzerland) for a comparable shopping basket (Note that the above mentioned 23 percent are for entry-level pricing).

For this comparison, a shopping basket with ten representative products was created for each category. The total prices of these baskets were compared, and the differences between Action and Temu were expressed as percentages. When selecting items, we focused on similar descriptions, appearances, functionalities, and materials. The selected items were also intended to reflect their respective categories as accurately as possible.

In addition to the significant price differences, it is noteworthy that Action offers most products at very low prices. Nearly 20 percent of the product range is available for under one euro, and nearly 80 percent for under five euros (see Question 3). Therefore, Action (Austria) proves to be a more attractive alternative to Temu (Switzerland) in terms of price.

The results of our analysis provide important insights for retail managers. First, it is surprising that Action (Austria) clearly undercuts the Chinese discount provider Temu in terms of price – even though Temu sources its products exclusively from China, benefits from numerous subsidies regarding shipping, and does not comply with all legal regulations. Second, European brick-and-mortar retailers can see that it is indeed possible to undercut Chinese competitors on price while still achieving sustainable profit margins. Third, this price comparison shows that Action can become highly attractive in Switzerland due to its extremely low prices. However, whether the product quality meets Swiss consumer expectations remains to be seen. In terms of pricing, however, these products definitely generate strong interest.

In neighboring countries, Action has generated significant interest with its low-price approach. Since entering the market in April 2025, the retailer’s attractive prices are now also available in Switzerland. To get an idea of how affordable Action is in Switzerland, the prices of 20 selected branded items were compared with their counterparts at Action in Germany.

The result shows that Action in Switzerland is, on average, 33 percent more expensive than Action in Germany. As shown in Fig. 8, an identical basket of 20 branded products costs CHF 83.76 at Action in Switzerland, while the same basket costs the equivalent of CHF 62.88 at Action in Germany. For the currency conversion, an exchange rate of 1 EUR = 0.93 CHF was used.

Fig. 8: Price comparison between Action Switzerland and Action Germany for 20 selected branded products

Thus, Action remains a low-cost provider in Switzerland – but at a higher international price level. The difference compared to Germany can be attributed to factors such as higher wages, rental costs, customs duties, and Switzerland’s higher purchasing power. Compared to other local retailers, Action still positions itself as a cost-conscious alternative.

The pricing reflects data collected in April 2025 and may change. Therefore, the results of this comparison are only valid for a limited time. Prices for Action Switzerland were collected in the Bachenbülach store, while the prices for Action Germany were taken from the official website at action.com/de-de/.

Action aims to reduce CO₂ emissions in its own operations (Scope 1 and 2) by 60 percent by 2030 compared to 2021. By 2023, an 11 percent reduction had already been achieved, supported by LED lighting and solar panels, which cover 63 percent of the energy consumption in the distribution centers. The indirect emissions from the supply chain (Scope 3) – estimated at 5.5 million tons of CO₂ equivalents and 99 percent of the total carbon footprint in 2021 – are being reduced through the use of eco-fuel in maritime shipping. Starting in 2024, Action is aligning its targets with the Science Based Targets initiative (SBTi) (Action, 2023).

Action promotes the circular economy and launched its first circular product in 2023 – plastic baskets made from returned items. The share of recycled materials in the product range rose to 4.8 percent (Circular Transition Indicator, CTI). Packaging weight is to be reduced by 25 percent by 2025; a 20 percent reduction was already achieved in 2023. All private-label packaging is recyclable, and switching to smaller tubes for masking tape saves 140 tons of packaging material annually (Action, 2023).

Action cooperates with suppliers who comply with labor and human rights in accordance with ILO, UN, and OECD guidelines. In 2023, 2,104 supplier assessments were carried out. The company achieved 100 percent transparency for private-label and direct import products and aims to extend this to all private- and white-label products by 2025. Sustainable materials are increasingly used: 99 percent of cotton is sourced through the Better Cotton program or is organic, and 94 percent of wood is FSC®/PEFC-certified. Only Fairtrade cocoa is used (Action, 2023).

Compared to Chinese online retailers such as Shein or Temu, Action operates in a more environmentally friendly way, as its logistics are primarily regionally organized. While Chinese providers ship individual orders directly from Asia, causing high CO₂ emissions, Action relies on centralized shipments to Europe. This consolidates transport and reduces packaging use. Additionally, in-store sales at Action avoid the emission-heavy last-mile delivery. This model results in comparatively lower environmental impact (Zimmermann, 2024).

According to its own figures, Action paid around €2.2 billion in taxes in 2023 and supports social initiatives through SOS Children’s Villages, the Johan Cruyff Foundation, and the Action Scholarship Fund. In 2023, the company employed 69,040 people from 155 nations – 72 percent of them women – created 8,988 new jobs, and promoted 2,742 employees. Training programs averaging 2.5 hours per employee support diversity, equity, and inclusion (Action, 2023).

Action adheres to strict governance and a comprehensive framework for human rights and environmental due diligence (HREDD). This includes anti-corruption measures, occupational safety, data protection, and the Code of Conduct, and ensures compliance with Germany’s Supply Chain Act and the EU’s Corporate Sustainability Due Diligence Directive (CSDDD). Long-term partnerships with suppliers support the goal of a sustainable supply chain. Action sources 49 percent of its products from China, 6 percent from other Asian countries, and 45 percent from Europe, promoting "proximity sourcing" near retail locations (Action, 2023).

Action pursues a holistic sustainability strategy that integrates environmental, social, and governance aspects. In 2023, Action conducted a double materiality assessment in accordance with the Corporate Sustainability Reporting Directive (CSRD) and is preparing to comply with the EU’s Corporate Sustainability Due Diligence Directive (CSDDD) to meet increasing demands for social and environmental responsibility (Action, 2023).

Action. (2024). Nachhaltigkeit. https://www.action.com/de-ch/nachhaltigkeit/

Galileo. (2024, Juli 15). "Wir haben immer den günstigsten Preis!" Welche Strategie verfolgt die Discounter-Kette "Action"? https://www.youtube.com/watch? v=egbncZoZ0Ok

NZZ. (2024, April 10). Der Discounter Action erobert Europa im Sturm – funktioniert sein Er-folgskonzept auch in der Schweiz? https://www.nzz.ch/wirtschaft /action-der-discounter-erobert-europa-und-auch-die-schweiz-ld.1824145

Tages-Anzeiger. (2024, März 6). Hier plant Billigkette Action ihre ersten Schweizer Filialen. https://www.tagesanzeiger.ch/discounter-action-das-sind-die-ersten-schweizer-filialen-154062266995

Trustpilot. (2024). Action. https://ch.trustpilot.com/review/action.com

Watson. (2024, Oktober 14). «Action ist unterste Preislage. Tiefer geht’s nicht mehr» - Experte über neuen Discounter. https://www.watson.ch/schweiz/international/660140427-action-in-der-schweiz-das-bedeutet-der-neue-discounter-fuer-kunden

Gemeindefachverband BL. (2021). Raumplanungs- und Baurecht. https://www.gfvbl.ch/public/upload/assets/1181/RAUMPLANUNGS-%20% 20BAURECHT_2021.pdf?fp=3

Konsider. (2024). Action will nach Bachenbülach, Freiburg, Martigny. https://www.konsider.ch/bericht-action-will-nach-bachenbuelach,-freiburg,-martigny-20240306

NZZ. (2024, April 10). Der Discounter Action erobert Europa im Sturm. https://www.nzz.ch/
wirtschaft/action-der-discounter-erobert-europa-und-auch-die-schweiz-ld.1824145

Rudolph, T. & Schweizer, M. (2006). Das Discount-Phänomen – Eine 360-Grad Betrachtung. Verlag Neue Zürcher Zeitung.

Stadt Zürich. (2024). Quartierpläne. https://www.stadt-zuerich.ch/hbd/de/index/
staedtebau/planung/quartierplan.html

Tages-Anzeiger. (2024). Hier plant die Billigkette Action ihre ersten Schweizer Filialen. https:\\www.tagesanzeiger.ch\\discounter-action-das-sind-die-ersten-schweizer-filialen-154062266995"

Watson. (2024). «Action ist unterste Preislage. Tiefer geht’s nicht mehr». https://www.watson.ch/schweiz/ international/660140427-action-in-der-schweiz-das-bedeutet-der-neue-discounter-fuer-kunden

All visited Action stores were heavily frequented, regardless of the time of day.

Shelf observations revealed clear differences in condition depending on the product category. In particular, the clothing section stood out for its disorganized state, amplified by a high volume of items and returned products. Some shelves contained items that had been returned without any order, and occasionally opened packaging was observed. Shelf gaps were also frequently noticeable. Especially in the Hard store, several shelves were not restocked, and boxes with goods were left in the aisles while staff worked on unpacking them.

Conversations with employees revealed complaints about staff shortages. According to the staff, this is generally due to lower wages compared to Aldi and Lidl, as well as constant stress. Because of the limited number of staff, only one checkout counter was often in operation.

In summary, the Action stores show organizational shortcomings, visible in empty shelves, unpacked boxes in aisles, and a hectic work environment for staff. As a discounter, Action prioritizes low prices, which sometimes leads to a neglect of tidiness and fully stocked shelves. This strategic approach enables an exceptionally low-cost shopping experience. Despite these limitations, the stores enjoy high customer traffic and popularity.

The comparison of the online and offline product range was carried out using the two stores in Meckenbeuren (Germany) and Hard (Austria) (see Fig. 9). All shelves in each store were photographed using a smartphone on January 13, 2025. The resulting images were then systematically analyzed on January 14, 2025 in three steps:

1. First, we sorted the photos according to the 15 product categories listed in the Action online shop.

2. Then, we manually counted the price tags visible in the images for individual products.

3. Finally, we compared the resulting numbers per product category with the item count in the Action online shop, calculating both the absolute and relative deviation.

Further information and images of the reviewed product categories are available upon request.

The percentage deviation across all product categories for the Meckenbeuren and Hard stores compared to the online shop was -0.5% and -2.5%, respectively. With a total of 5,425 and 5,375 items listed online, these deviations suggest that the in-store assortment largely matches the online assortment. The comparison between the two stores also indicates a 95% overlap in the number of counted items, suggesting a nearly standardized product range (see Fig. 9).

Fig. 9: Comparison of Online and Offline Product Range at Action Stores in Hard and Meckenbeuren

It is worth noting that significant deviations were particularly observed in the categories "Garden" and "Travel" at both locations. These discrepancies may be partly due to limitations of the comparison itself. On one hand, the analysis took place on a Monday, meaning new weekly merchandise may not yet have been fully stocked on store shelves. The shelf gaps observed in the Hard store support this assumption. Additionally, manual counting based on images presents a certain margin of error that must be taken into account.