Commerce
In a challenging market environment, with prices on a deflationary trend and intense international competition, the Commerce Department managed to generate sales of 6'797.4 million and growth of 6.3% in 2012 with 13'483 employees.
| in CHF million | 2012 | 2011 | Change in % |
| Net revenue from goods and services sold | |||
| – Denner | 2'832.8 | 2'784.2 | 1.7 |
| – Migrol | 1'881.6 | 1'766.7 | 6.5 |
| – Magazine zum Globus | 778.9 | 788.1 | –1.2 |
| – Depot (Gries Deco Group) | 332.7 | 265.3 | 25.4 |
| – migrolino | 224.3 | 24.6 | 811.8 |
| – Interio | 196.1 | 242.7 | –19.2 1 |
| – Ex Libris | 153.8 | 168.7 | –8.8 |
| – LeShop | 149.5 | 149.5 | 0.0 |
| – Office World | 160.2 | 156.1 | 2.6 |
| – Probikeshop | 22.4 | 8.3 | 169.9 |
| – Other companies | 36.9 | 31.0 | 19.0 |
| Total net revenue from sales of goods and services sold | 6'769.2 | 6'385.2 | 6.0 |
| Other operating income | 52.7 | 49.4 | 6.7 |
| Eliminations | –24.5 | –39.2 | –37.5 |
| Total income (sales) | 6'797.4 | 6'395.4 | 6.3 |
| Earnings before financial income, income tax and pension plan effect (EBIT) | 13.9 | 63.4 | –78.1 |
| Segment assets | 2'344.6 | 2'226.8 | |
| Investments in long-term assets | 193.9 | 230.0 | |
| Employees | 13'483 | 12'305 |
1 Sales decline at Interio due primarily to the transfer of DEPOT homeware stores and boutiques to Depot Schweiz AG.
Distribution network
Distribution network Commerce
| No. of sites 2012 | No. of sites 2011 | Sales area (m2) 2012 | Sales area (m2) 2011 | |
| Denner | 788 | 760 | ||
| Denner stores | 465 | 444 | 183'370 | 172'979 |
| Denner Satellite stores (included Denner Express) | 323 | 316 | ||
| Globus (Magazine zum Globus AG) | 38 | 38 | 97'508 | 96'902 |
| Globus department stores | 15 | 15 | 85'106 | 85'086 |
| Herren Globus | 23 | 23 | 12'402 | 11'816 |
| Interio (furniture stores)1 | 10 | 34 | 39'053 | 47'782 |
| Depot Switzerland1 | 25 | – | 15'258 | – |
| Depot (Germany and Austria) | 356 | 273 | 168'963 | 130'277 |
| Office World | 24 | 23 | 15'969 | 15'252 |
| Ex Libris | 107 | 113 | 10'450 | 10'890 |
| MIGROL | ||||
| Filling stations, total | 287 | 289 | ||
| Migrol Auto Service/Migrol Service | 150 | 151 | ||
| Filling stations (automat) | 137 | 138 | ||
| Convenience Stores (migrolino and Migrol Shops) | (142) | (139) | ||
| Convenience Stores | 252 | 234 | ||
| migrolino2 | 194 | 174 | ||
| Migrol-Shops | 58 | 60 |
1 The Depot-Interio boutiques and galleries that were previously shown under Interio were transferred to the new subsidiary «Depot Switzerland» in 2012.
2 These locations are divided into stand-alone migrolinos, Migrol migrolinos, Shell migrolinos and Socar migrolinos.
Business operations in 2012, especially at Interio and Depot, were dominated by the challenging changes in logistics and major start-up investments (e.g. also m-way). The dynamic development of the online business models of LeShop, Probike, OWiba and Ex Libris has continued in the light of the growing importance of online trading. Globus, Denner and migrolino led the way in building up their market share.
Denner: further growth
As the leading Swiss discounter, Denner reported successful sales growth for the third consecutive time, with net sales up by 1.7% from the previous year to CHF 2‘832.8 million. Adjusted for inflationary effects of 1.5%, real growth was therefore 3.3%, which is encouraging. In 2012, Denner increased its customer frequency by a further 2.5% at a total of 788 (+24) locations. This means that Denner has grown by well above the market average, and has managed to win further market share.
Migrol: success in the core business
Following the transfer of management of the shop business to migrolino, in 2012 Migrol continued to see healthy growth in its core business of heating oil and motor fuel. Sales in all sales channels were above expectations, and Migrol was therefore able to increase its sales by CHF 114.9 million to CHF 1'881.6 million. The temporary closure of the Cressier refinery as a result of its bankruptcy did not lead to any serious supply problems.
Globus: further gains in market share
In 2012, Magazine zum Globus (Globus and Herren Globus) generated net sales of CHF 778.9 million. In view of the fact that sales prices have fallen by about 1.6%, the result is well above expectations. Globus was therefore able to win further market share from its direct competitors. As a result, Globus has strengthened its position as Switzerland’s leading premium department store in a difficult market environment.
Depot: strong growth and logistics reorganisation
With 83 new openings and an additional 1100 employees, Depot managed to increase its sales by 25.4% to CHF 332.7 million. With the construction of the new distribution centre in Niedernberg (Germany) with 130'000 pallet spaces and the simultaneous running of 19 external warehouses, as well as the challenge of integrating the logistics of the Swiss boutiques taken over from Interio, the Depot organisation is stretched to its limits. This was reflected mainly in the considerable extra costs in the logistics area and the value-added chains. The commissioning of the new distribution centre is planned for mid-2013.
migrolino: new partnership and optimised supply chain
migrolino has continued the dynamic growth of the previous year, and now has a total of 194 migrolino shops. migrolino has gained another master franchise partner in the Azerbaijani oil company Socar, which has taken over Esso Schweiz, and by the end of 2013 some 55 large Esso shops will have been converted to migrolino. Parallel to this, processes have been so well optimised at the new small-volume logistics site in Suhr that it has now achieved a supply capability of over 99%. The key figures from migrolino substantially exceeded expectations.
Ex Libris: continued development in online and cross-channel business, optimisation of the store network
After a difficult 2011, the market segment for books, films, music and games experienced further falls in prices in 2012. At Ex Libris this resulted in a CHF 14.9 million fall in sales to CHF 153.8 million. Despite this, Ex Libris managed to further increase its market share in each segment. As part of the continued strategic development of the cross-channel and online competencies, Ex Libris has taken the decision to further streamline its store network and to close 19 stores by the end of 2013. In parallel to this, the online sales channels and cross-channel ranges will be further expanded.
OWiba: strategic realignment as multi-channel provider
With total sales of CHF 160.2 million, OWiba’s (Office World and iba) sales were just below the previous year’s total. In terms of content, the realignment of iba from a seller of products to an integrated online service provider is proceeding well. As part of this process, Tramondi Büro AG was taken over to complement iba in the managed print services area. In overall terms the development of OWiba was generally within the framework of the strategic medium-term plan and realignment as a multi-channel provider.
m-way: continued development of the business model
As a competence centre for electromobility in the b2c and b2b area, m-way has been operating since mid-2011 as an independent enterprise of the Federation of Migros Cooperatives. The first wave of expansion has now been completed, and m-way operates seven shops throughout Switzerland. In parallel with this, in the b2b area a start has been made on the first ambitious pilot projects with partners from both the private and public sectors.
LeShop: expansion of the range of services
After a difficult first half-year and in a deflationary environment, LeShop managed to maintain its sales at the same level as the previous year, at CHF 149.5 million. One milestone achieved in 2012 was the successful launch of the first LeShop.ch DRIVE at Studen near Biel. In addition, the first two LeShop.ch RAIL were opened in the main railway stations in Zürich and Lausanne. Apple awarded LeShop the Best Swiss App Award 2012 for the newly launched iPad and mobile application.
Probikeshop: growth and consolidation of competence
Probikeshop has managed to increase its sales as a pure play online dealer in the cycle accessories area by 170% to CHF 22.4 million. Its operational focus was on the consolidation and strengthening of the organisation by means of new appointments to key positions in marketing, IT and logistics of experienced online specialists. In addition, preparations were made for the insourcing of logistics at the company’s own logistics centre in Saint-Priest (F) near Lyon in the second quarter of 2013. In parallel with this, Probikeshop has expanded its product range to a total of over 70'000 articles. Preparations for the entry into the Swiss market are under way.
Sustainable development
As in the previous year, the basic social and ecological requirements that had formerly applied mainly to Cooperative Retailing have also been progressively and consistently implemented in the companies of the Commerce SBU. This also affects environmental and energy management, which will be a focal point for the coming years. The Commerce SBU is therefore increasingly orienting itself to the sustainable development standards of the whole group, and is intensively promoting these according to the particular business model of the enterprises concerned.
Goals and outlook
The Commerce SBU is concentrating its activities for the current financial year on the consolidation of the growth and innovation offensive introduced over the past three years. The focus here will include the systematic expansion of migrolino towards leadership of the convenience market and the ambitious commissioning of the new distribution centre for Depot. In parallel with this, the company will be paying attention to the continued dynamic development of its e-commerce and cross-channel strategies in order to provide further support for the online offensive of the whole Migros Group. Magazine zum Globus and Denner will consistently follow the successful path they are on and endeavour to win further market share through their closeness to the customer.