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 2015, the ten regional Cooperatives generated sales of CHF 14.4 billion (– 1. 1 %) in Switzerland and CHF 1.2 billion abroad (– 10.2 %) (in total CHF 15.6 billion, or – 1.9 %). The domestic market share was 15.3 %, up from 15.1 % a year earlier.

In local currency terms, Migros France grew by 12.8 %, generating sales of EUR 120.6 million. Tegut recorded sales of EUR 980.9 million (+ 1.1 %) with an increase in productivity per area of 2 %. Taking into account closures and new store openings, the total number of markets at the end of the year was 273. Nineteen markets were temporarily closed to customers on account of refurbishment but met with an excellent response upon their reopening as sales climbed by around 10 %.

Sales in supermarkets and hypermarkets in Switzerland stood at CHF 11'670.3 million (– 1.3 %), reflecting the impact of an 8 % increase in shopping tourism to countries just across the Swiss border. With negative inflation across the Migros ranges averaging 1.3 %, the 10 Cooperatives were therefore able to maintain their sales levels in real terms.

The specialist markets Micasa, SportXX, Melectronics, Do it + Garden and OBI posted sales of CHF 1'622.0 million (– 3.0 %). Adjusted for negative inflation of 6.0 %, the five specialist markets together recorded growth of 3.0 % in real terms. With growth of 15.2 % in 2015, the specialist markets reported a pleasing sales trend in their online shops.

Overall, customers benefited from price cuts in excess of CHF 200 million in Cooperative Retailing.

Sales of sustainable and regional products totalled in excess of CHF 3.5 billion: Migros again recorded an increase in sales of its sustainable products last year (+ 7.0 %). Sales of products with ecological and social added value totalled CHF 2'678.4 million (+ 8.4 %). Particular highlights included the Migros Bio/Alnatura range with year-on-year growth of 14.8 %, products from sustainable fishing and fish farming bearing the MSC and ASC labels (+ 46.3 %) and the TerraSuisse sustainability programme which represents ecological and animal-friendly agriculture (+ 6.5 %). Products from the "Aus der Region. Für die Region." (From the region. For the region.) range enjoyed continued strong demand, with a sales volume of CHF 898.6 million (+ 3.2 %).

As part of Migros' sustainability strategy, 62 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 the construction of new stores and the renovation of existing ones. The Migros network of sales outlets increased by 11 in total to 659 sites at the end of 2015. The sales area for supermarkets, hypermarkets, specialist markets and catering services grew by a total of 15'550 m2 (+ 1.1 %). The productivity per area in supermarkets and hypermarkets in Switzerland totalled CHF 13'078/m2 (– 2.9 %), while the corresponding figure in specialist markets was CHF 3'888/m2 (– 2.9 %).

Catering continued to grow, posting sales of CHF 683.9 million (+ 1.2 %). A sharp increase was recorded in particular in both community catering (+ 19.1 %) and event catering (+ 26.9 %). Sales at the Migros restaurants remained stable (+ 0.0 %), while those of Migros take-aways were down slightly (– 2.4 %).

The strategic business unit Commerce mainly includes the retail companies Denner, Migrol, Magazine zum Globus, Ex Libris, Office World Group (OWiba), Interio, Depot (Gries Deco Group), migrolino, Le Shop, Probike and Digitec Galaxus (fully integrated on 1 April 2015).

Denner recorded sales of CHF 2'902.1 million (– 0.4 %), more or less matching its result for the previous year. The decisive action taken by Denner following the abolishment of the minimum euro exchange rate and the associated price reductions of more than CHF 40 million further strengthened consumer confidence in Denner. Denner currently has 797 stores; 32 new stores have opened and the same number of stores have closed. A further 180 Denner branches were converted to the new store design in the reporting year. All of the converted branches reported an increase in customers and rising sales. The remaining 188 Denner stores are to be converted by the end of 2016 as part of the "Fokus" project. This will be followed by the strategic realignment of Denner's satellite stores.

The continued sharp fall in the price of crude oil and the decline in fuel sales in regions close to the border as a result of the strong Swiss franc all impacted negatively on Migrol's sales, which decreased by 16.2 % to CHF 1'359.5 million. Allowing for weighted negative inflation of 18.5 %, growth in real terms was 2.7 %.

Magazine zum Globus AG (including Schild) posted sales of CHF 928.7 million (– 3.3 %) in 2015. Globus department stores recorded sales of CHF 693.1 million (– 3.3 %), while the corresponding figures for Herren Globus and Schild were CHF 70.6 million (– 5.1 %) and CHF 165.0 million (– 2.7 %) respectively.

Ex Libris' sales fell by 5.4 % year-on-year to CHF 121.0 million.

The Office World Group increased its sales to CHF 179.6 million (+ 0.3 %) in the reporting year.

Interio generated sales of CHF 181.9 million (– 2.7 %) in 2015.

The retail chain Depot (Gries Deco Company abroad and in Switzerland) posted sales of EUR 428.9 million (+ 12.0 %) or CHF 456.5 million. Due to the negative currency effect, sales fell by 1.7 % on the previous year (CHF 464.3 million).

migrolino, with a current total of 287 sites (+ 33), generated sales of CHF 382.0 million (+ 10.0 %).

Le Shop recorded sales of CHF 175.9 million (+ 6.6 %) in 2015. The spread of smartphones and tablets across all age groups has been a contributing factor in this regard. More than 40% of the orders are already made via mobile devices.

The French online market leader for bicycle accessories, Dolphin France SAS (Probikeshop), posted an increase in sales, this time of 46.1 % to EUR 56.8 million (in Swiss franc terms + 28.2 % to CHF 60.5 million).

In the 2015 calendar year, Digitec Galaxus generated sales of just under CHF 700 million through its two online shops digitec.ch and galaxus.ch. Its full integration into Migros Group as of 1 April 2015 resulted in sales of CHF 498.9 million for the group financial statements. The result equates to year-on-year sales growth in the double-digit percentage range. A further illustration of the successful year can be seen in the growth in employee numbers: in 2015, the company created more than 100 new jobs.

Thanks to the e-bike specialist m-way and its subsidiary Sharoo – a platform for using and sharing private and commercial vehicles – Migros has proven that it is also innovative in the field of alternative energy/sustainable mobility and in implementing new trends, such as the sharing economy.

In the e-commerce business, Migros further cemented its position as the undisputed market leader. With the inclusion of Digitec Galaxus, total e-commerce sales amounted to CHF 1'599.5 million (+ 47.3 %) in nominal terms. Discounting acquisition, inflation and currency effects, e-commerce sales came to CHF 1'149.4 million (+ 8.9 %), of which CHF 938.1 million (+ 10.2 %) were generated by the online retailing business. The main sales drivers are Digitec Galaxus, the online operations of Saviva, LeShop.ch, the Office World Group, Probikeshop, the online business of Ex Libris and the Migros specialist markets.

The strategic business unit Industry and Wholesaling generated sales of CHF 6'254.5 million in 2015 (previous year CHF 6'015.9 million), resulting in growth of 4.0 % in a challenging market environment. Its market position in Switzerland and abroad was strengthened with strategic acquisitions. Despite a strong Swiss franc and increasing pressure in the Swiss market, M-Industry advanced by 0.8 % in real terms. Sales with the Migros Group were increased by 2.1 % to CHF 4'488.1 million. In the wholesale market, the sales growth of almost 10 % to CHF 1'085.5 million (previous year CHF 995.4 million) is primarily due to the integration of the Lüchinger + Schmid Group for the first time. The international business, consisting of exports and overseas locations, grew by 8.8 % to CHF 680.9 million (previous year CHF 626.1 million). Despite the stronger Swiss franc, the export business showed itself to be robust (currency-adjusted growth of 6.3 %).

In a financial year during which external factors had a profoundly negative impact, the strategic business unit Travel recorded an 8.7% fall in posted sales to CHF 1'479.1 million. Net sales fell by 7.1 % to CHF 1'304.6 million (total income CHF 1'314.2 million). At Hotelplan Suisse in particular, the abolishment of the minimum euro exchange rate caused a considerable drop in sales, as the price advantage was immediately passed on to customers. Geopolitical disputes in Eastern Europe and the Middle East, the resulting flow of refugees and the financial crisis in Greece were not the best advertisement for the affected destinations. The market environment in Italy is also challenging at present, which explains why Hotelplan Italia is not yet on target. Hotelplan UK and the Holiday Home division showed very encouraging trends.

Income in the Financial Services sector amounted to CHF 864.5 million in the reporting year, with interest revenue of CHF 717.0 million or 82.9 % constituting the main share of total income. The fall in total income of CHF 13.9 million can therefore also be attributed primarily to lower interest revenue.