How Action uses AI to drive growth and efficiency: NRF Retail Big Show

Paris - At the NRF Retail Big Show in Paris, Action chief executive officer (CEO) Hajir Hajji spoke about the company's growth strategy and how technology, including artificial intelligence (AI), is being implemented to support its rapid expansion. The Dutch discount retailer, founded in 1993, has grown from a family-owned business to a European powerhouse with more than 3,000 stores across 14 countries.

Hajji, who has been with Action for 28 years and has served as CEO since January 2022, attributes the company's success to its "simple and efficient model," which is centered on providing 'everyday low prices'. The retailer's core philosophy is that customers should not have to pay too much for non-food products. This is achieved through a centralized purchasing organisation that buys large volumes of products with a flexible assortment. This strategy allows the company to stop selling an item if it cannot secure the lowest price.

Implementing AI for data-driven decisions

Action is integrating AI into its business operations to support its continued growth. Hajji said that technology has enabled the company to grow quickly while remaining efficient and keeping costs low. The retailer is selective in its adoption of new technology, choosing to focus on "proven technology" and learning from the experiences of food retailers.

The company is applying AI in various domains, with a particular focus on marketing, where the technology according to her a "much bigger topic". Action's central marketing team uses data and customer insights to define its promotional product offerings and overall marketing approach. The retailer also uses AI and data to monitor competitor prices in all the markets where it operates, ensuring it maintains its lowest price guarantee. While AI is still in the early stages of implementation in the buying department, the company is "starting up, learning and trying" to see how it can be applied.

Maintaining a competitive edge

When asked about competition from platforms like Temu, Hajji emphasized the importance of a well-rounded customer proposition that goes beyond just price. While Action is known for its low prices, Hajji argued that customers return because the company also invests in quality and sustainability. Hajji said that she does "not believe in platforms that are only focusing on price, because at the end, if you are disappointed as a customer, you will not come back". The CEO also disagreed with the idea that sustainability must come at a higher product price. According to Hajji, it is possible for a retailer to make sustainability accessible to more people by making the right choices about what it offers customers. Hajji noted that sustainability and cost-effectiveness go hand-in-hand for Action due to the company's long-standing focus on managing costs.