One M better

In spring 2009, Migros presented its new slogan: "One M better" as well as the brand "M-Classic".

With its new slogan, Migros is using its existing brand strength and building on its uniqueness in cooperative retailing with the "orange M". Ninety-two percent of Swiss citizens recognise the "M". Better brand awareness is hardly possible. All the same, Migros would like to strengthen the personality of the Migros brand even further. The slogan clearly expresses the company's claim.

In the year under review, Migros realised an important supplement to its brand range with M-Classic. The breadth of Migros retail business is reflected in a total of 30,000 products and 270 brands. Thanks to M Budget and M Sélection, the customer can quickly find the right product in the right price class.

The new product line M-Classic follows the motto "One M better". The line doesn't comprise any new products. Instead, it encompasses tried-and-trusted Migros products for everyday use. Under the M-Classic brand, these products receive a uniform, modern and fresh packaging design. Consistent streamlining of the brand range and bundling of products serves as important orientation for the customer, aiding the decision-making process. By the end of 2009, around 600 articles were already marketed under this brand.

Throughout the year under review, the new brand image in Retailing was consistently accompanied by a marketing campaign. One of the advertising films even won the Bronze Lion award in Cannes.

New store concept

In the year under review, the first Migros stores were converted in accordance with the 2010 store concept. With respect to future conversion and new-build projects, all markets – regardless of size – are to be consistently redesigned.

The 2010 store concept provides more space. Specific, themed zones help guide the customer through the store. The presentation of fresh produce is similar to that of a marketplace. Alongside the familiar meat and fish counters, there are additional service counters for cheese and cold meats. The concept creates a new shopping experience for the customer and optimised inventory management for the wholesaler.

In 2009, the first four centres were converted in accordance with the new store concept. Together with many smaller and medium-sized sales outlets, Migros will have completed the majority of renovations in its stores by 2011 and will continue to consolidate its position as the No. 1 in Swiss retailing.

The year under review also saw the changeover to shelf price labelling driven further forward and the launch of a pilot programme. Shelf price labelling enables the customer to compare prices better while at the same time creating greater flexibility in the case of price adjustments.

Further price adjustments

Migros offers best value for money in the retail business. Shoppers staying with Migros across the whole year save around 15%. In order to maintain this position, the company also implemented various price reduction measures during the reporting year.

Price reductions were possible thanks to further increases in efficiency and productivity. In the current year, considerable cost savings were realised in logistics and advertising as well as through lower procurement prices. Migros passes these savings on to customers by way of lower prices.

Migros also launched a price offensive in October. In the case of the current price reductions, a typical basket of goods for Swiss customers was put together from the full product assortment. This includes basic items ranging from cold meats, chocolate, drinks and pasta to various hygiene and clothing articles.

Sustainability: Remains a priority at Migros

Migros further strengthened its commitment to the environment. Last year, Migros extended its range of products aimed at enabling customers to reduce their environmental burden – alongside energy-saving devices, these included detergents, asparagus, batteries and cat litter.

Migros also leads the way at home. As a result of various measures, energy consumption in stores is falling despite an increase in overall sales space. The retailer also takes on a leading role in its use of the "Minergie" standard in new-build stores. In 2009, Migros opened four new outlets, among them the shopping centres in St. Margrethen (SG) and Brügg (BE).

Migros also made progress in its social commitment: The Better Cotton Initiative and its exemplary occupational health management are just two examples of many projects to which Migros committed itself last year, both in Switzerland and worldwide, for better working conditions.

Outlook: Maintain course

Migros Cooperative Retailing will continue to adhere to its corporate values in order to continue its success story. Freshness, Swissness, regionality, sustainability and exceptional value for money will continue to inform our strategy and actions in the coming years. With the imminent changeover to shelf price labelling, we will improve price transparency for customers while at the same time saving CHF 30 million per year; a saving which will be passed on to customers in the form of price reductions.