Commerce
In a difficult market environment and despite deflation, the Commerce Department managed to generate sales of CHF 6'395.4 million and growth of 5% with 12 305 employees in 2011. In doing so, the business operations were above all dominated by investments in expanding online activities, optimisations of the process chain (e.g. at migrolino), and aggressive expansion (Depot). Against this background, earnings before interest and taxes (EBIT) were CHF 63.4 million down on the previous year, but in line with expectations.
| in CHF million | 2011 | 2010 | Change in % |
| Net revenue from goods and services sold | |||
| – Denner | 2'784.2 | 2'783.7 | 0.0 |
| – Migrol | 1'766.7 | 1'703.9 | 3.7 |
| – Magazine zum Globus | 788.1 | 818.1 | –3.7 |
| – Depot (Gries Deco Company) | 265.3 | n.a. | – |
| – Interio | 242.7 | 257.3 | –5.7 |
| – Ex Libris | 168.7 | 190.5 | –11.4 |
| – LeShop | 149.5 | 151.2 | –1.1 |
| – Office World | 156.1 | 130.9 | 19.3 |
| – Other companies | 63.9 | 41.5 | 54.2 |
| Total net revenue from sales of goods and services sold | 6'385.2 | 6'077.0 | 5.1 |
| Other operating income | 49.4 | 45.3 | 9.1 |
| Eliminations | –39.2 | –29.4 | 33.3 |
| Total income (sales) | 6'395.4 | 6'092.9 | 5.0 |
| Earnings before financial income, income tax and pension plan effect (EBIT) | 63.4 | 112.3 | –43.5 |
| Segment assets | 2'226.8 | 1'996.4 | |
| Investments in long-term assets | 230.0 | 171.3 | |
| Employees | 12'305 | 9'235 |
Distribution network
Distribution network Commerce
| No. of sites 2011 | No. of sites 2010 | Sales area (m2) 2011 | Sales area (m2) 2010 | |
| Denner | 764 | 761 | ||
| Denner stores | 444 | 441 | 172'979 | 170'035 |
| Denner Satellite stores | 320 | 320 | ||
| Globus (Magazine zum Globus AG)1 | 38 | 39 | 96'902 | 96'415 |
| Globus department stores1 | 15 | 15 | 85'086 | 84'444 |
| Herren Globus1 | 23 | 24 | 11'816 | 11'971 |
| Interio (furniture stores and Depot-Interio boutiques) | 34 | 30 | 47'782 | 42'442 |
| Depot (Germany and Austria) | 273 | 181 | 130'277 | 83'865 |
| Office World | 23 | 22 | 15'252 | 14'567 |
| Ex Libris | 113 | 114 | 10'890 | 11'010 |
| MIGROL | ||||
| Filling stations, total | 289 | 295 | ||
| Migrol Auto Service/Migrol Service | 151 | 149 | ||
| Filling stations (automat) | 138 | 146 | ||
| Convenience Stores (migrolino and Migrol Shops) | (139) | (138) | ||
| Convenience Stores | 234 | 225 | ||
| migrolino2 | 174 | 160 | ||
| Migrol-Shops | 60 | 65 |
1 New floor space calculation directives have been in place for Globus department stores and Herren Globus since 2011. The previous year’s values are also stated in accordance with the new floor space calculation directives in the interest of direct comparability.
2 Operated by Migrol, Shell or migrolino AG
Denner: strong performance
Contrary to the market trend, the discounter Denner posted a very pleasing result and kept net sales at the level of the previous year. Adjusted for inflation effects, real growth is 1.7%. At its 764 shops, Denner generated sales of CHF 2'784.2 million. As such, Denner successfully defended and even expanded its position as number 3 in Swiss retail and the leading Swiss discounter despite the strong franc, Swiss customers shopping across the border, cautious consumer sentiment and increasing competition.
Migrol: focus on core business
In its core business of combustibles and fuel trading, Migrol developed in line with expectations. The price developments on crude oil markets resulted sales rising to CHF 1'766.7 million, i.e. +3.7%. By focusing on its core business, the management of the migrolino shop locations was transferred to migrolino AG.
migrolino: new logistics centre launched
With the commissioning of a new small-quantities logistics centre at the Suhr site, the opening of 14 new migrolino locations and the relocation of the entire head office to the Suhr site, migrolino successfully implemented a highly demanding workload in 2011. By completely reorganising the supply chain and assuming the management of all migrolino petrol station shops from Migrol, migrolino is consistently aiming to become Switzerland's leading convenience shop operator. The brand and concept are very popular amongst the Swiss population and are to be further enhanced aggressively in 2012.
Globus: leading position confirmed
Magazine zum Globus (Globus and Herren Globus) posted net sales of CHF 788.1 million in 2011, which corresponds to a drop in sales of –3.7%. Adjusted for non-comparable internal services, the sales drop was –2%. With this performance, Globus and Herren Globus managed to win market shares in a difficult market environment, and Globus again confirmed its leading position as the premium department store in Switzerland.
Interio: year of restructuring
As expected, 2011 progressed as a year of restructuring for Interio. In a very difficult market environment, sales dropped by 5.7% to CHF 242.7 million. In the future, Interio will focus on its core business of furniture shops, while the boutique business will be continued by Depot.
Depot/GDC: 95 new locations opened
In 2011 Depot (Gries Deco Company) was consolidated in the Migros Group for the first time. Overall, GDC's sales grew by 36% in the year under review. 95 new branches were opened in Germany, Austria and Switzerland. As such, Depot is one of the strongest growing retailers in Europe. Approx. 1100 new employees were taken on. The company now employs more than 4000 people. Depot was also above expectations in terms of its results. The strong growth rate is to be maintained in 2012. Depot will thereby further expand its market leadership in the area of home accessories in Germany, Austria and Switzerland.
Ex Libris: expansion of cross-channel business
Driven by price deterioration, the sales of Ex Libris dropped by CHF 21.8 million to CHF 168.7 million. Against this background, the company focused on expanding its cross-channel business and growing its club customer base.
OWiba: integration and new perspectives
With total sales of CHF 156.1 million, OWiba (Office World and iba) posted figures slightly down on the previous year. The planned integration projects were successfully completed and the expected synergies achieved. With a stronger interlinking of the retail, e-commerce and call centre sales channels, Office World is consistently working on the implementation of its multichannel strategy. iba met expectations in full both in its core business and in the development of new business models.
LeShop: moving into profitable territory
In what is also a demanding market environment, LeShop moved into profitable territory with sales of CHF 149.5 million in 2011. The growth was, however, strongly slowed in the difficult overall market in the second half of the year in particular. On the other hand, the number of orders by smartphones and tablets grew strongly. More than 10% of all orders placed with LeShop are now made on the go.
m-way: further development of the business model
Since July 2011 (retroactively from January 2011), m-way, the centre of excellent for electromobility, has been an independent company of the Federation of Migros Cooperatives. After opening its first shop in Zurich in October 2010, a second shop was opened in St Gallen in May 2011 and a third one in Geneva in December.
Sustainability
The companies in the Commerce Department increased their efforts regarding sustainable corporate management across all levels of the process chain. Following a decision of the Migros Executive Board, the basic social and ecological requirements, which applied previously for Cooperative Retailing in particular, were applied consistently in the entire Group. The environmental and energy management will also be expanded to Commerce in the coming years. As such, the department is taking a crucial step to the sustainability of the entire Group. In doing so, the focuses will also be set differently in accordance with various business models of the companies affected.
Targets and outlook
The Commerce Department is focusing its activities on promoting growth and innovation in the current financial year. In Depot and migrolino, Migros operates two growth concepts with the potential to lead the market in segments that will also become even more interesting for customers in the future. Further investments will also be made in this growth in 2012. The dynamic development of e-commerce and the increasingly popular smartphone shopping make the entire online area a strategic factor for Migros. Against this background, Office World, Ex Libris, LeShop, m-way, Migrol and Depot will continue their e-commerce and multichannel offensives.