Action: The Low Cost Revolution that Aims to Surpass Pepco and Ikea in Spain

In an increasingly competitive Spanish commercial landscape, the discount store chain Action has taken center stage with unprecedented expansion. Since its arrival in the Spanish market in 2017, the Dutch firm has managed to open more than 150 establishments in various autonomous communities, offering a wide variety of products at very affordable prices. Its business model, which combines a diverse range of household, food, and toy items, has resonated greatly among consumers, making it a popular choice for those looking to save without sacrificing quality.

In recent years, Action has focused its efforts on gaining market share and positioning itself as a serious alternative to other low-cost chains, such as Pepco and Ikea. With a strategy focused on opening stores in strategic locations, the company has capitalized on the trend towards responsible consumption and interest in affordable products. According to the company’s estimates, its network of stores is expected to grow even further, with the goal of reaching 300 locations in Spain in the next three years.

The popularity of Action can be attributed, in part, to its sales model that includes seasonal and trending products, creating a sense of novelty and urgency among consumers. Unlike Pepco, which focuses mainly on fashion and home goods, Action offers a variety of categories including gardening, decoration, and cleaning products, highly appreciated by customers seeking a comprehensive shopping experience. Ikea, on the other hand, competes in the furniture and decoration sector, leaving a competitive space where Action has found its niche.

Action’s leaders have announced plans to implement new marketing strategies and promotions in their future growth, with the goal of strengthening their value proposition and attracting an even wider audience. The company has emphasized its commitment to sustainability and the implementation of responsible practices in its supply chain, which resonates positively with more conscious consumers.

With a strong focus on expansion and diversification of its catalog, Action seems to be on track to directly challenge the supremacy of the ‘low cost’ market in Spain, challenging established giants like Pepco and Ikea. Price wars and the constant search for value by consumers ensure that the discount store sector will become an exciting battleground in the coming years. The response of competing brands will be key in determining whether Action can sustain its momentum or, conversely, face significant obstacles in its growth. The evolution of this new player in the discount market remains to be seen.

Source: MiMub in Spanish

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