Dutch discounter Action has expanded across much of Europe and now plans to cross the pond to open 100 stores in the Unites States. But it will face tough competition on America's shores from behemoth chains.
The fast-growing Netherlands-based retailer plans to debut its first U.S. store in the Southeast at the end of 2027 or early 2028 "provided the market context" doesn't change, CEO Hajir Hajji said in Action's annual report.
The goal is to roll out 100 U.S. stores by the end of 2030. In preparation, the company said it is currently creating a U.S. organization "combining local expertise with experienced Action leaders." London-based investment trust 3i Group owns a 65.3% stake in Action.
"As we are launching from scratch on a new continent, we will take the time needed to build up successful operations: one store at a time, patiently learning what works and adjusting when necessary."
Several European discounters, most notably Aldi and Lidl in the grocery sector, have established brick-and-mortar footprints in the states. Action sells only nonfood items at no-frills stores at steep bargain prices, introducing 150 new products every week, a unique selling point, according to John Mercer, head of global research for Coresight Research.
That format should appeal to Americans who are facing rising gas and grocery prices and trying to save money. Those shoppers have already been flocking to retailers such as Walmart, Target, Dollar Tree, Dollar General, Ollie's Bargain Outlet and Five Below, as well as off-price sellers such as T.J. Maxx and Burlington Stores. Those are the rivals that Action will be competing against for market share.
Entrenched incumbents
"Like Aldi and Lidl, Action has been a European discount success, tapping demand for value amid often-constrained economic growth and consumer incomes in continental Europe," Mercer said Monday in an email to CoStar News.
"However, expansion into the U.S. will likely be Action’s greatest challenge yet, given geographical distance, the scale of the market versus individual European countries, and entrenched competition," Mercer said. "The company will be entering a large and growing but well-served U.S. discount retail segment, where incumbents such as dollar stores continue to expand their store footprints rapidly."
Action will be competing against "rivals that have built scale on deep local knowledge, and it is also a market where other European entrants, such as Lidl, have not always found straightforward success," according to Mercer.
Action, founded in 1993, has roughly 3,300 stores in 14 countries, with France its biggest market. It added a record 384 stores in 2025 and plans to add at least another 400 this year. Its nonconsumable product assortment ranges from detergent and deodorant to candles and home decor. Action's U.S. growth plans were earlier reported by Bloomberg News.
Action conducted an in-depth market study of the United States and sees "a lot of promise for a formula like ours in nonfood retail," CEO Hajji said in the company's annual report.
Differentiation a key
"As we are launching from scratch on a new continent, we will take the time needed to build up successful operations: one store at a time, patiently learning what works and adjusting when necessary," she said.
The United States holds potential for Action, "but it is not an easy market," according to Neil Saunders, a retail analyst and managing director at analytics firm GlobalData.
"The discount format will translate well as American consumers are price-sensitive, especially at the current time, and love formats that save them money," Saunders said in an email to CoStar News.
"The big question is how Action will stand out from the crowd," he said. "It is hard to see how they will be significantly cheaper than some of the existing formats without destroying their profit. That means the differentiation must come down to assortment and product mix or creating a more interesting shopping experience."
Action declined to comment.
The company last week reported that its net sales rose 16% to 16 billion euros, or $18 billion, in 2025. That compares with almost $43 billion at Dollar General and $19 billion at Dollar Tree, according to Mercer.