Income Trend (Sales Trend)

The activities of the regional Migros Cooperatives, the Federation of Migros Cooperatives and the services of the Group’s logistics companies are combined in the strategic business unit Cooperative Retailing. In 2014, the ten regional Cooperatives generated sales of CHF 14.6 billion (+1.0%) in Switzerland and CHF 1.3 billion abroad (-5.5%) (total CHF 15.9 billion, or an increase of 0.4%). The fall in sales abroad amounting to CHF 75.9 million is due primarily to the sale of the branch business of Migros Deutschland as well as to tegut... Group and Migros France.The German retailer tegut..., which was acquired at the start of 2013 by Migros Zurich, continued its restructuring process (due to be completed by 2017) and generated sales of EUR 970.0 million (-0.7%) in 2014. Following the renewal of 19 tegut... markets in 2013, a further 24 were revitalised during the reporting year. The total number of markets has remained unchanged at 280, following the opening of three new stores (in Frankfurt, Erlangen and Stuttgart) and the same number of closures during the reporting year. As in the previous year, bio products accounted for 25% of sales.

Sales in supermarkets and hypermarkets in Switzerland stood at CHF 11.829 billion, which corresponds to an increase of +1.6%. The specialist markets Micasa, SportXX, Melectronics, Do it + Garden and OBI posted sales of CHF 1.673 billion (-0.6%). The average level of inflation across all Migros ranges was +0.3%.

Sales of sustainable and regional products totalled CHF 3.3 billion: Migros recorded a pleasing +10.4% increase in sales of its sustainable products last year. Sales of products offering ecological and social added value totalled nearly CHF 2.5 billion. The biggest drivers of growth were the organic product range (+14.8%), products from socially and environmentally sustainable farming carrying the UTZ label (+47.1%) as well as products from sustainable fishing and fish farming bearing the MSC and ASC labels (+21.1%).

Demand for "Aus der Region. Für die Region." (From the region. For the region) (AdR) products rose by more than +5.0%. Sales of products bearing the AdR label, which was introduced 15 years ago, exceeded CHF 870 million.

As part of Migros’ sustainability strategy, more than 60 binding commitments were made to Generation M (‘Generation von morgen’ or ‘The generation of tomorrow’). In all of its activities, Migros looks for solutions with the right economic, social and ecological balance.

As every year, the regional Cooperatives made substantial investments in constructing new stores and remodelling existing ones. The Migros network of sales outlets increased by 9 in total to 648 sites at the end of 2014. The sales area for supermarkets, hypermarkets and catering grew by 13'419 m² in total (+1.0%). The productivity per area in supermarkets and hypermarkets in Switzerland totalled CHF 13'467/m² (–0.6%). At CHF 4'005/m² (–0.2%) productivity per area in specialist markets remained virtually unchanged.

In a highly competitive market, Catering ended 2014 with sales of CHF 675.8 million, a fall of 0.4% on the previous year.

The strategic business unit Commerce mainly includes the retail companies Denner, Migrol, Magazine zum Globus, Ex Libris, Office World Group (OWiba), Interio and Depot (Gries Deco Group), migrolino as well as Le Shop.

Denner increased its sales by CHF 39.7 million to CHF 2'912.9 million (+1.4%) and currently has 797 locations (+6). 120 Denner branches have already been converted to the new store design.

The sharp fall in the price of crude oil, stockpiling due to the CO2 tax on heating oil as well as the unusually warm winter in 2013/14 all impacted negatively on Migrol’s sales, which decreased by -12.9% to CHF 1'622.3 million.

Magazine zum Globus AG (including Schild from 1 January 2014) posted sales of CHF 960.6 million (+20.5%) in 2014. Globus and Herren Globus recorded sales of CHF 791.0 million (-0.8%). In the market as a whole, Globus was able to gain market share on its main competitors and further expand its position as one of Switzerland’s leading department stores.

Ex Libris sales fell by -9.9% year-on-year to CHF 127.9 million (-0.5%, adjusted by sales area). Online business posted a pleasing increase of +8.3% (previous year +7.3%).

The Office World Group increased its sales to CHF 179.1 million (+ 1.9%) in the reporting year.

Interio generated sales of CHF 187.0 million (+9.7%) in 2014.

The retail chain Depot (Gries Deco Company abroad and in Switzerland) once again extended its market leadership in all countries and increased sales by CHF 42.2 million to CHF 464.3 million (+11.4%, currency-adjusted).

migrolino, with a total of 254 sites at present (+11), generated sales of CHF 347.2 million (+15.1 %).

Le Shop recorded sales of CHF 165.0 million (+4.4%) in 2014. The new nationwide same-day delivery service, the DRIVE collection centres in Staufen (Aargau) and Studen (Bern) and mobile business were contributing factors to the growth.

In the e-commerce business, Migros once again succeeded overall in cementing its position as the undisputed market leader. Total e-commerce sales amounted to CHF 1'085.7 million (+16.6%) and thus exceeded the one billion mark for the first time. The main drivers are LeShop.ch, the online operations of the Hotelplan Group, the online business of Ex Libris, the Office World Group, Migrol, Probikeshop, Micasa and SportXX, as well as Melectronics, Interio, Denner, Frey, Delica and Gries Deco. The online retailing business generated sales of CHF 881.7 million (+19.1%).

The strategic business unit Industry & Wholesaling exploited the opportunities for growth in its target markets both in Switzerland and abroad, posting sales in excess of CHF 6 billion for the first time ever in 2014. Sales increased by 4.4% to CHF 6'015.9 million (previous year CHF 5'763.5 million). Organic growth amounted to a pleasing 3.1%. M-Industry was able to consolidate its market position in Switzerland and abroad. All customer groups contributed to the growth. Migros Group sales were increased by 3.0%. Sales in wholesaling operations rose by 1.3% to CHF 995.4 million (previous year CHF 983.0 million). International sales advanced strongly, by 22.0% to CHF 626.1 million (previous year CHF 513.0 million).

In the strategic business unit Travel, posted sales in the financial year ending on 31 October 2014 increased by 8.4% to CHF 1.62 billion. Net sales increased by 17.0% to CHF 1.32 billion (total income CHF 1.34 billion). Inter Chalet, the new addition to the group, contributed a significant share to the rise in sales, yet organic growth also amounted to 3.4%. Currencies on average were stable over the year and had no noticeable impact on the sales trend. The significant increase in online sales put Hotelplan Suisse back on the growth path. Further sales increases were posted by Hotelplan UK and Interhome. A slight decline in sales was recorded in Italy and by Travelwindow as a result of portfolio adjustments and system renewals.

Income from financial services business amounted to CHF 872.6 million in the reporting year, with interest revenue totalling CHF 735.5 million or 84.3 %, constituting the main share of total income. Commission income amounted to CHF 97.9 million and other financial assets and foreign exchange dealings generated a net profit of CHF 39.2 million. In the fiercely contended mortgage market, Migros Bank achieved a growth in mortgage loans of CHF 1'328.1 million or 3.9 %, thanks to the company’s beneficial conditions. On the liabilities side, Migros Bank achieved a net increase in customer deposits and liabilities of CHF 1'561.3 million or 5.2%.