3i Group (III), the £39bn private equity giant, says weaker consumer spending in France and Germany combined with strikes in France have weighed on Action, the European discount retailer that accounts for around two thirds of its assets, but that its private equity and infrastructure portfolios are “performing resiliently against a subdued macroeconomic environment”.

While Action continues to generate strong sales earnings growth with year-to-date sales of €10.9bn that are 18% ahead of the same period last year, like-for-like sales growth slowed to 6.5% but stood at 6.8% at the end of August benefiting from good seasonal sales and strong trading from new and recently opened stores.

It expects operating earnings for the 12 months to 30 September will be 21% higher at €2.29bn than last year. Cash generation has continued to be strong, with cash balances at 21 September 2025 at €758m.

Action has added 207 net new stores this year and remains on track to deliver or exceed 370 net new stores in 2025. Seven new stores have opened in Switzerland and its first store in Romania, in the town of Pitești, opened yesterday.

3i is increasing its stake in Action by buying 2.2% of the equity from Singapore sovereign wealth fund GIC in return for the issue of 19.9m new shares.

In an update ahead of a capital markets seminar in the City this afternoon, 3i says Royal Sanders, the personal care products group, is said to be performing well, with the broader private equity portfolio “showing improving momentum”.

Since the first quarter update in July, 3i has sold MAIT, an IT consultant, for £143m, a 30% uplift to the 31 March valuation 2.7 times its original investment.