3i Group shares fall 21% as Action's sales slow

3i Group’s shares fell sharply on May 14, 2026, dropping 21% as concerns over slowing sales at its key portfolio company, Action, weighed on investor sentiment. The discount retailer, which accounts for 73% of 3i’s £29.3 billion portfolio, reported weaker-than-expected like-for-like (LFL) sales growth in recent periods, particularly in France, where growth stood at just 0.9% compared to 5.8% in other markets. Action’s net sales for the first 12 weeks of 2026 reached €3.7 billion, up 14.5% year on year, but recent trading implied LFL growth of only 3%, below some expectations.

3i reiterated its full-year outlook for Action, forecasting LFL sales growth of 4-5% and at least 400 new store openings in 2026. The company also highlighted expansion plans, including a projected 4,650 additional stores in Europe and the first U.S. store opening by 2028. Despite these long-term ambitions, the near-term slowdown, particularly in France, has raised concerns about the ability to meet previously set growth targets.

The share price decline reflects a broader shift in market sentiment, with 3i’s stock now trading at a 20% premium to its net asset value, down from a previous 48% premium. Analysts have emphasized the importance of the upcoming holiday season in determining future performance, with the resilience of Action and the broader 3i portfolio underpinned by historical performance and ongoing expansion initiatives.