Cooperative Retailing
In 2012 the ten Migros Cooperatives generated sales of CHF 14.524 billion. CHF 204 million was invested in discounts, which is equivalent to an average price reduction of 1.4%.
For yet another consecutive year, the retail sector was dominated by the weakness of the euro and the resulting shopping tourism. The Migros Cooperatives close to the Swiss border in particular experienced a downturn in their sales. At the same time, prices were permanently reduced on over 2000 articles in 2012. Because of the weak euro, buying conditions in other countries improved. The resulting currency gains were passed on to consumers in the form of lower prices.
The price cuts, totalling CHF 204 million, led to an average price reduction of 1.4%. The biggest reductions were made in two of the specialist markets, Melectronics (–6.4%) and Micasa (–4.9%).
| in CHF million | 2012 | 2011 | Change in % |
| Net revenue from goods and services sold | |||
| – Cooperatives incl. other countries | 14'524.0 | 14'661.9 | –0.9 1 |
| – FMC | 5'147.5 | 5'222.7 | –1.4 |
| – Logistics | 334.4 | 330.7 | 1.1 |
| – Other companies | 185.4 | 165.3 | 12.2 |
| Total net revenue from sales of goods and services sold | 20'191.3 | 20'380.6 | –0.9 |
| Other operating income | 156.0 | 172.6 | –9.6 |
| Eliminations | –5'117.3 | –5'246.8 | –2.5 |
| Total income | 15'230.0 | 15'306.4 | –0.5 |
| Earnings before financial income, income tax and pension plan effect (EBIT) | 565.5 | 427.9 | 32.2 |
| Segment assets | 9'209.0 | 9'087.6 | |
| Investments in long-term assets | 859.2 | 758.8 | |
| Employees | 58'833 | 59'190 |
1 Adjusted sales decline –0.4% in nominal terms, due to non-recurring effect in the wholesaling business (transfer from MC Zurich to migrolino).
Distribution network
Distribution network Cooperative Retailing
| No. of sites 2012 | No. of sites 2011 | Sales area (m2) 2012 | Sales area (m2) 2011 | |
| M DISTRIBUTION SITES SWITZERLAND | ||||
| Migros sites | ||||
| M | 305 | 297 | 237'758 | 225'042 |
| MM | 211 | 214 | 497'621 | 501'973 |
| MMM | 40 | 39 | 325'294 | 322'454 |
| TOTAL | 556 | 550 | 1'060'673 | 1'049'469 |
| MParcs/specialist market centres/Obi | 46 | 46 | 270'231 | 269'392 |
| Single-line stores (bargain basements, etc.) | 24 | 23 | 12'313 | 12'533 |
| TOTAL | 70 | 69 | 282'544 | 281'925 |
| Standalone restaurants | 5 | 4 | 1'521 | 1'003 |
| TOTAL SITES | 631 | 623 | 1'344'738 | 1'332'397 |
| M DISTRIBUTION LINES SWITZERLAND | ||||
| Supermarkets | ||||
| M, MM und MMM | 556 | 550 | 866'450 | 856'731 |
| Other supermarkets1 | 13 | 14 | 17'818 | 16'376 |
| TOTAL SUPERMARKETS | 569 | 564 | 884'268 | 873'107 |
| Specialist markets | ||||
| Do It+Garden | 52 | 52 | 105'692 | 108'589 |
| Micasa | 29 | 29 | 77'875 | 75'553 |
| SportXX | 57 | 57 | 65'099 | 65'729 |
| Melectronics | 72 | 68 | 34'694 | 33'613 |
| Obi DIY superstore/garden | 11 | 11 | 86'762 | 86'754 |
| TOTAL SPECIALIST MARKETS | 221 | 217 | 370'122 | 370'238 |
| Migros catering services | ||||
| M-Restaurants, standalone | 5 | 4 | 1'521 | 1'003 |
| M-Restaurants, in-store | 186 | 185 | 88'827 | 88'049 |
| TOTAL RESTAURANTS | 191 | 189 | 90'348 | 89'052 |
| M DISTRIBUTION SITES OTHER COUNTRIES | ||||
| France (Migros France) | ||||
| MMM | 2 | 2 | 9'947 | 9'947 |
| MM | 1 | 1 | 1'317 | 1'317 |
| Germany (GM Basel) | ||||
| MM | 4 | 5 | 8'445 | 10'163 |
| TOTAL OTHER COUNTRIES | 7 | 8 | 19'709 | 21'427 |
| WHOLESALING - COOPERATIVES AND OTHER | ||||
| Migros Partner | 69 | 71 | ||
| VOI | 16 | 13 | ||
| LEISURE FACILITIES AND FOUNDATIONS | ||||
| Fitnessparks, fitness centres and Wellnessparks2 | 50 | 44 | ||
| Aquaparcs | 3 | 3 | ||
| Sportparcs | 3 | 3 | ||
| Golfparcs | 8 | 8 | ||
| «Green Meadow» Parks Foundation | 4 | 4 |
1 Integral with MParcs or specialist market centers.
2 Incl. subsidiaries (Activ Fitness, FlowerPower, One TC, MFIT).
Sales up in real terms
The ten Cooperatives in Switzerland generated sales of CHF 14.322 billion and CHF 202 million in other countries, giving an overall total of CHF 14.524 billion. After adjustment for a special item in the wholesale area (deferral of CHF 78.4 million from the Migros Cooperative Zürich to migrolino), year-on-year sales were down by 0.4%. However, if the 1.4% price reduction is taken into account, the Migros Cooperatives managed to increase their sales by 1%. In volume terms, therefore, Migros sold more in 2012 than it had in 2011.
At the end of 2012, the Migros sales network comprised 631 sites, 8 more than the year before. The sales area for the super/hypermarkets, specialist markets and catering services has therefore increased by 12'341 m2 to 1'344'738 m2; which represents an increase of 0.9%. The further development of the sales network is centred on the improvement of local supply services by Migros.
Strong coffee, strong own brands
The new product Café Royal was a highlight in the Migros assortment in 2012. The capsules are compatible with the current Nespresso machines, and at the launch were available in five flavours. In a blind test organised by the Swiss TV programme «Kassensturz» involving 130 visitors to the Glattzentrum, Café Royal Espresso came out as winner over the Nespresso product Arpeggio.
As well as Café Royal, there were particular successes for the regional produce label «Aus der Region. Für die Region.», the own brand Farmer and Bifidus.
Sustainable development programme for tomorrow’s generation
In 2012 Migros launched «Generation M», a sustainable development programme with almost fifty binding promises and concrete projects for tomorrow’s generation. The programme represents a long-term commitment by the company to protect the environment, to promote sustainable consumption, to treat society and employees in a socially acceptable and exemplary way, and to support a healthy lifestyle.
Within the framework of Generation M, Migros added more items to its range of sustainable products in 2012. Particularly strong sales growth was recorded by the Migros Bio (+9.0%), FSC (+18.9%), MSC (+12.2%) and Topten (+35.8%) labels. A start was also made on sourcing cocoa and tea, as well as coffee, from socially acceptable and environmentally friendly cultivation certified under the UTZ Certified scheme. At Migros, by the end of 2012, 62% of the chocolate bars from Chocolat Frey were UTZ certified.
Subito for faster, more comfortable shopping
Subito is a self-scanning and self-checkout system which has been launched in a number of Migros stores. The company has therefore responded to a growing need among customers who don’t have to handle the items more than once when they are doing a larger shop, and when they are only doing a small shop they spend less time at the checkout.
Families Club
In 2012 Migros launched a club for families under the name «Famigros». The club pursues the goal of providing support for parents in all phases of life. Members benefit from information, tips, checklists, recipes and lots of other advantages. The launch party took place at the Europa-Park in Rust (Germany), which for one day was available for the exclusive use of club members. A prize draw was held for a total of 24'000 free entry passes.
Animanca
The collection fever that was sparked off in 2010 by «Murmelmania» continued in 2012. Migros introduced «Animanca – Entdecke», offering customers a range of activities and promotions spread over the whole year.
Goals and outlook
In 2013 Migros is anticipating a rise in sales of 1 to 2%, assuming that the trend for shopping tourism has bottomed out. Efficiency gains and lower purchasing costs will continue to be passed on consistently in the form of cheaper prices. However, 2013 will see prices rising in a number of raw material markets, and this will impact on selling prices. Migros will continue to do everything it can to offer its customers the best value for money in the future. At the same time, it promises to broaden its social and ecological commitment.