The Chairman’s & CEO’s Review

Despite the difficult economic situation in the EU, the Swiss economy continued to grow strongly in 2014. GDP grew by 2%. With a 2.1% increase in sales to CHF 27.3 billion, the Migros Group performed very well and increased its market shares even further.

Andrea Broggini, Chairman of the Board of Directors (right)
Herbert Bolliger, Chief Executive Officer (left)

At the start of 2014, Swiss consumers still assessed the general economic outlook as being positive, but they were more critical at the end of the year. They were also more pessimistic about the prospects for their personal financial situation and the development of unemployment: at -11, overall consumer sentiment fell below the long-term average of -9 points. Average inflation stood at 0% and shopping tourism increased again.

The Migros Group achieved excellent growth of 2.1% in this environment, generating total sales of CHF 27.3 billion. For the first time, this figure includes the sales of Schild, the Ospena Group AG (Molino restaurants; from 01 June 2014), SweetWorks in the USA (from 01 April 2014) and the holiday home agency Inter Chalet.

Sustainable development

The healthy development in all strategic business units shows that the right strategic measures have been taken in recent years. This also applies to the social, ecological and cultural commitment, which is united under the Generation M sustainable development programme. The renowned ratings agency Oekom Research assesses the most important retailers worldwide. The Migros Group achieved the best result by far in 2014 and is therefore the world's most sustainable retailer.

The Migros Group's earnings before interest and taxes and effect from pension plans (EBITwere CHF 1'148.2 million in the reporting year, 10.0% above the previous year's figure (2013: CHF 1'043.9 million). The improvement was the result of a sustainable cost management, efficiency programmes and the procurement management.

With a volume of CHF 1'640.9 million (2013: CHF 1'324.2 million), investments remained at a very high level. Migros was therefore once again a key economic partner in Switzerland in 2014, helping to safeguard thousands of jobs. Substantial investments were made in the Cooperative Retailing and Commerce SBUs in particular, with CHF 1'202.8 million and CHF 189.8 million respectively (previous year CHF 941.8 million and CHF 174.4 million respectively).

In 2014, the Migros Group achieved by far the best result worldwide in the Oekom Rating.

Retail sales in the core business, i.e. the net sales of all Migros retail companies (non-consolidated) rose in nominal terms by 0.8% to CHF 23.05 billion. Without Migrol, the figure for Switzerland was CHF 19.612 billion, representing an increase of 2.3%. Retail sales abroad decreased by CHF 17.9 million (1.0%) to CHF 1.817 billion. The sales decline is primarily due to the sale of Migros Deutschland's store business and to the Tegut Group and Migros France.

Sales in Cooperative Retailing in Switzerland were CHF 14.604 billion, representing an increase of 1.0% in comparison to the previous year. Supported by the campaign "Von uns. Von hier." (From us. From here.), the development of Migros' own brands was encouraging. Including other countries, sales in Cooperative Retailing rose by 0.4% to CHF 15.91 billion. The international sales of the Cooperatives were down CHF 75.9 million (5.5%) in total.

Market leadership extended

Just under CHF 2.5 billion worth of products offering ecological or social added value were sold in total. Demand for products carrying the label "Aus der Region. Für die Region" (From the region. For the region.) rose by 5%. Overall, sustainable and regional products generated sales of CHF 3.343 billion.

At the end of 2014, Migros' sales network included a total of 648 locations, nine more than the previous year. Six locations were closed, 15 new ones were opened, nine replacement buildings were constructed and five larger conversions and extensions were built.

Surveys carried out in the reporting year showed that customer satisfaction is very high. Migros customers are very satisfied with the selection of products, the range of services and the value for money. There is a growing demand for exchanges via the communication platforms M-Infoline and Migipedia as well as via Facebook and Twitter. This dialogue reflects the close relationship with customers.

M-Industry further strengthened its market position in Switzerland and abroad, with sales up by 4.4%.

In the e-commerce business, Migros again managed to extend its undisputed leading position on the market. Online sales exceeded the one billion mark for the first time, coming in at CHF 1.086 billion (+16.6%). The main drivers were, the online activities of the Hotelplan Group, the online business of Ex Libris, the Office World Group, Migrol, Probikeshop, Micasa, SportXX, Melectronics, Denner, Frey, Delica and Gries Deco. Sales of CHF 881.7 million were generated in online retail (+19.1%).

M-Industry further strengthened its market position in Switzerland and abroad. It generated sales of CHF 6.016 billion (previous year 5.764 billion), representing an increase of 4.4%. From 01 April 2014, the figure also includes the sales of the US-based group SweetWorks.

The sales of the Hotelplan Group increased by 17.0% to CHF 1.322 billion (2013: CHF 1.130 billion). The Swiss tour operator Hotelplan Suisse, the Interhome Group and Hotelplan UK made a considerable contribution towards the organic growth. The lion's share of the increase can be attributed to the full consolidation of Inter Chalet Ferienhaus GmbH.

Migros Bank continued on its growth course. As in the previous year, there was a strong inflow of savings deposits and the volume of mortgage lending was encouraging. The balance sheet total exceeded the CHF 40 billion mark for the first time in the reporting year. Operating income and gross profit also reached record levels.

Diverse Social Responsibility

From the sales revenue of Cooperative Retailing, Migros Culture Percentage once again invested CHF 122.3 million in culture, society, education, leisure and business in 2014, including in the Classics series of concerts and the Migros Museum of Contemporary Art. The institution, which goes back to the original idea of Gottlieb Duttweiler and is incorporated in the Migros statutes, represents a commitment that is unique anywhere in the world.

The Engagement Migros development fund was set up in 2012 to supplement Migros Culture Percentage. With this fund, the companies from the strategic business units Commerce, Financial Services and Travel undertake to invest 10% of their dividends in supporting projects in the areas of culture, sustainable development, business and sport. A total of CHF 9.8 million was made available in 2014 (CHF 6.1 million spent).

At the end of 2014, the Migros Group employed a total of 97'456 people, about 84'000 of which in Switzerland. The increase of 3.4% (2013: 7.8%) is primarily down to changes in the Scope of Consolidation. Migros continues to be the largest private employer in Switzerland. With above-average social security benefits and an appreciative working environment, it takes its responsibility towards employees seriously.

The company's success is founded on a strategy oriented to the long term in the interests of all stakeholders. In keeping with the philosophy of its founder Gottlieb Duttweiler, it is centred on social accountability and adheres to the ten principles of the United Nations Global Compact.

The healthy development of the Migros Group is based on its cooperative philosophy, its national and regional roots, and its commitment to serving the needs of its customers with professional passion and in a credible, performance-oriented and responsible way.


Migros is in very good shape. It is an innovative and profitable company that enjoys huge confidence among the Swiss population. It will continue to pass on efficiency gains and lower procurement costs consistently in the form of lower prices. Migros will continue to actively promote online trading and do all it can to offer the best value for money. At the same time, it promises to build on its social and ecological commitment and meet its social responsibilities, as well as consolidating its economic performance.

Passionately committed to improving the quality of life

Migros' Mission Statement

Migros has made a long-term commitment to protect the environment, promote sustainable consumption, interact with society and employees in a socially acceptable and exemplary way and campaign for a healthy lifestyle. The principle of sustainable development is firmly established in Migros' Mission Statement and in its group strategy. This is completely in keeping with the guiding principle of being passionately committed to improving the quality of life of its Cooperative members and its customers.

BrogginiAndrea Broggini, Chairman of the Board of Directors BolligerHerbert Bolliger, Chief Executive Officer

The Chairman's & CEO's Review (pdf, 265.61 KB)