Review by the
Chairman of the Board of Directors
Dear Readers
The Swiss economy has picked up again. Relatively stable consumption also contributed to this. Just like investments in infrastructure, it has not collapsed in recent years. Migros's unchanged high investments in the Swiss market are also responsible for this.
2010 was a year of consolidation for Migros. We used the time to evaluate the situation and strengthen our position. I am delighted that the Migros Group managed to continue to grow in the year under review despite greater competition. The encouraging results reflect our initiatives over recent years. These efforts have now had a positive impact on business.
Migros Group continued to post healthy growth in the year under review. This included strategic balancing to strengthen the value-added chain. The Board of Directors achieved special momentum in the online range in customer dialogue and mobility. Examples are the expansion of LeShop, the introduction of new dialogue platforms and the roll-out of m-way.
Process optimisations throughout the entire Group enable comprehensive price reductions. With a remarkable price/performance offensive at the end of 2010, Migros strengthened its price/performance leadership. At the same time, the range was selectively expanded and vertical integration further strengthened in the year under review. The measures taken to improve efficiency were implemented consistently. The results of the individual business areas are therefore a lot more balanced today.
Swissness is not an advertising promise for Migros. As Switzerland's biggest employer and most important provider of Swiss products, but also thanks to our investments throughout Switzerland, we again made a crucial contribution to our economy in 2010. Here, our customers and the cooperative approach are the focus of our actions.
We also rate actions over words when it comes to sustainability. Important initiatives were launched in the area of climate protection in 2010. Here, we are guided by a comprehensive approach that also includes procurement and production. We support the Global Compact and focus on social responsibility - keeping with the tradition of our founder Gottlieb Duttweiler. We are delighted that this has been again certified externally. In the year under review, for instance, we were stated in the GfK Business Reflector as the best Swiss company with an optimum price/performance ratio and an above-average social and environmental commitment.
Variety is and will continue to be a basic value of Migros. This not only refers to a broad product range, but also to our range of services: Migros is more than a leading retailer, but also an industry, specialist shop, travel agent, bank and further education institute. Despite our variety and versatility, we endeavour to keep our offerings both functional and simple. Customer benefit is the focus, but Migros also offers a broad selection of different and interesting jobs. In sustainability, we also focus on biological and ecological variety - not only in the year of biodiversity.
Migros's success is based on a strategy that takes a long-term approach. We again managed to play to our strengths this year to secure our position. This includes a strong vertical integration with our own high-quality industrial enterprises and a broad and attractive range of retail and comprehensive service offerings.
Despite our long-term strategy, we aim to react swiftly to trends and changes. In the interest of our customers and cooperative members, the range is expanded in a targeted manner and in accordance with the requirements of our customers and cooperative members. Furthermore, we make substantial investments in Switzerland in order to maintain our leading position, thanks to our modern, customer-friendly infrastructure. We work on this every day.
We want to stick to this model of success in the future. The aim is not to win a sprint, but to create value in the long run - in the interests of all our stakeholders. The basis for the healthy development of our Group is cooperative actions, regional ties, credibility and passion, and also the success and performance orientation of everyone involved. Migros's values will continue to determine our entrepreneurial actions in the future.
The tasks in the year under review were carried out and further successes achieved. For this, I wish to thank our management team and the more than 80'000 employees. They have all made a contribution to the successful development of Migros. I thank our customers, suppliers and business partners on behalf of the Board of Directors for their trust and cooperation. We look forward to implementing our vision with you jointly to live better every day.
Claude Hauser
Chairman of the Board of Directors