How Action Built 51 Stores in Slovakia Within Three Years

The Dutch discount retailer Action entered Slovakia in March 2023 and has since opened 51 stores, a pace of roughly 16 new locations per year. That makes it one of the fastest physical retail rollouts the country has seen in recent years. The brand, which sells a rotating assortment of non-food household goods, clothing, toys and small electronics, landed in the middle of a cost-of-living squeeze — but country head Jan Štěpánek says the move was a long-planned step, not a reaction to inflation.

Action’s formula is built on price: roughly two-thirds of its products are priced below €2. The chain achieves this by centralising procurement for its multiple European markets, slashing marketing costs (it runs no television advertising) and managing a lean product range. Speaking to Forbes, Štěpánek highlighted how the discounter applies rigorous checks to its Chinese supplier base, picks store locations of around 1,000 sq m in towns of varying sizes, and leans on high-velocity items — like its best-selling product, wet wipes — to drive footfall and turnover.

The expansion shows little sign of slowing. Having already built a presence across the Czech Republic, the company is pouring energy into Slovakia, targeting further openings while applying a blueprint refined on other European markets.

Inside Action’s Model: Central Purchasing, No-Frills Marketing and Strict Supplier Selection

A Pricing Model Built on Scale, Not Gimmicks

Action’s ability to hold most items under the €2 mark is not a short-term promotional stunt. Centralised buying across the group means that prices negotiated for one country flow through to others, giving the Slovak chain a cost base comparable to more mature markets. Skipping television and mass-media advertising eliminates a substantial line item; the company instead relies on word-of-mouth and the visibility of its storefronts. That combination — margin control and low customer-acquisition cost — allows it to maintain price tags that local general-merchandise rivals struggle to match.

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What a Best-Selling Wet Wipe Says About the Assortment

The fact that wet wipes top the sales chart is revealing. Action’s range is curated for rapid turnover: it stocks relatively few SKUs, focusing on everyday consumables and small impulse purchases that customers buy repeatedly. This minimises inventory complexity and markdown risk while generating the traffic needed to support a constant cycle of new openings. The discounter’s strict supplier vetting in China — a key sourcing region — is designed to ensure that cost does not come at the expense of quality or compliance, a point Štěpánek underscored in the interview.

The Expansion Pace and Local Competition

Sixteen openings per year in a market the size of Slovakia is aggressive. It puts pressure on incumbent discounters and small-town variety stores, many of which lack the purchasing muscle of a pan-European chain. Action’s preference for 1,000 sq m units in secondary cities suggests it is targeting areas where retail rent is lower and competition from large hypermarkets is less intense. The challenge now is sustaining the pace: finding suitable spaces, hiring and training staff, and maintaining the same operational standards that a rapid rollout can strain.

What Other Retailers Can Take from Action’s Playbook

  • Centralise procurement across borders. Action’s cross-country buying power is a critical cost lever. Other multi-market retailers should evaluate whether fragmented national buying teams are leaving aggregate volume discounts on the table.
  • Reallocate marketing budgets to price. Zero television spend works for a discounter with high store visibility, but the principle holds: directing marketing savings into lower shelf prices can build customer loyalty faster than another campaign.
  • Narrow the range and chase velocity. A skinnier assortment of everyday, repeat-purchase items — like Action’s wet wipes — reduces inventory complexity and strengthens supplier negotiation. Retailers can audit their SKU lists to identify low-turn elements that erode margins.
  • Match location strategy to the format. Action targets 1,000 sq m spaces outside prime high streets. For discounters entering new markets, a disciplined real-estate playbook based on demographic data and pre-set spatial requirements can accelerate rollout and contain rent costs.