Private equity firm 3i saw its shares tumble following disappointing sales growth at Dutch discount retailer Action. The decline reflects investor concerns about weakening momentum at the company's key portfolio holding.

Action has been a cornerstone of 3i's investment strategy, providing steady returns through its aggressive expansion across Europe. However, the recent slowdown suggests the retailer may be facing headwinds in sustaining its rapid growth trajectory.

For 3i, Action represents one of its largest exposures, making the retailer's performance critical to the overall fund's returns. Investors are now reassessing the private equity group's ability to deliver consistent performance amid shifting retail conditions.

The sell-off underscores broader concerns about consumer spending power and the sustainability of deep discount retail models in the current economic environment.