At the NRF Retail Big Show in Paris, Action Chief Executive Officer (CEO) Hajir Hajji spoke about the company’s growth strategy. She explained how technologies, including artificial intelligence (AI), are used to support the quick expansion. The Dutch discounter, which was founded in 1993, developed from a family company to a European Powerhouse with more than 3,000 branches in 14 countries.
Hajji, who has been working at Action for 28 years and has been acting as CEO since January 2022, attributes the success of the company to its “simple and efficient model”. This model focuses on the provision of ‘low prices’ daily. The retailer’s nuclear philosophy is that customers should not pay too much for non-food products inside. This is achieved by a central shopping organization that shops large quantities of products with a flexible range. This strategy enables the company to hire the sale of an article if it cannot achieve the lowest price.
AI implementation for data-controlled decisions
Action integrates AI into his business processes to support his continuous growth. According to Hajji, technology has made it possible for the company to grow quickly and at the same time to stay efficient and to keep the costs low. The retailer is selectively introducing new technologies and focuses on “proven technologies”. He learns from the experiences of food retailers.
The company uses AI in various areas, especially in marketing. According to Hajji, the technology is a “much bigger topic” there. The Action Central Marketing team uses data and customer inspection to define its advertising offers and the entire marketing approach. The retailer also uses AI and data to monitor the prices of competitors in all markets in which he works. So he ensures that he complies with his low price guarantee. Although the AI implementation in the shopping department is still at an early stage, “the company begins, learns and tries” to see how it can be used.
Receive competitive advantages
When asked about the competition through platforms such as Temu, Hajji emphasized the importance of a rounded customer offer that goes beyond the price. Although action is known for its low prices, Hajji argued that customers: inside, because the company is also investing in quality and sustainability. Hajji said that “she doesn’t believe in platforms that only concentrate on the price, because in the end when you are disappointed as a customer, you won’t come back”.
The CEO also contradicted the idea that sustainability must go hand in hand with a higher product price. According to Hajji, it is possible for a retailer to make sustainability accessible to more people by making the right decisions about what he offers his customer: inside. Hajji noted that sustainability and cost efficiency go hand in hand for action. This is due to the company’s long -term focus on cost management.
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