Action retailer utilizes private labels and high-volume procurement

The European discounter Action utilizes a diverse retail model combining well-known brand names with approximately 70 exclusive private labels. These private labels, such as Candra for home goods, Alvira for personal care, and Ziki for fashion, are designed to create a recognizable brand identity similar to traditional retail while remaining exclusive to Action stores.

Action distinguishes its private labels from white-label products, which are sourced from suppliers and can be sold by other retailers under different names. To increase supply chain transparency, the company reported the assignment of 1,576 factories in 2022.

Regarding its pricing strategy, Action operates over 3,300 stores across 15 European countries. The company maintains low prices by leveraging high purchase volumes and utilizing multiple procurement channels, including direct orders from factories, specialized importers, wholesalers, and stock clearance traders. This high-volume approach allows the retailer to offer both branded goods and private labels at competitive rates.