The Chairman's and CEO's Review

The Migros Group generated sales of CHF 27.7 billion in 2016, representing an increase of 1.2%. It managed to increase its market share slightly despite the challenging economic environment.

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

Economic developments again proved challenging for Migros in 2016. Consumer sentiment was affected by issues such as Switzerland as a high-price island, increasing healthcare costs and fears of job losses. The same applied to consumer appetite, with private consumption in Switzerland falling below expectations. In addition, retailing continued to be affected by shopping tourism to bordering countries, the volume of which is estimated to be about CHF 11 billion.

Despite the challenging conditions, the Migros Group performed steadily. Total sales in 2016 increased by CHF 331 million (+1.2%) to CHF 27.7 billion. This result was also influenced by crude oil prices (fuel and heating oil business of Migrol), which again saw a sharp decline, and negative geopolitical events, which affected Hotelplan's travel business in particular.

Solid performance

The solid performance in a challenging environment shows that Migros once again managed to increase trust among customers. With the various online offerings, numerous product innovations and new services, and the social and environmental commitment encapsulated in the Generation M sustainability programme, the right solutions were found to some big challenges.

With the successful launch of PickMup, which allows customers to collect orders placed online, Migros proved its online cross-channel expertise while expanding the range of services for its customers. Digitec Galaxus AG performed well, extending its undisputed leading position in the area of e-commerce even further. The total online sales of the Group amounted to CHF 1.852 billion (+15.8%). Through the launch of the internet platform "iMpuls" in 2016, Migros made a further commitment to the topic of health, which is firmly established in the Group strategy. The platform will be systematically expanded across all business units in the coming years.

The Migros Group's earnings before interest and taxes (EBIT) were CHF 911 million in the reporting year, 7.2% below the previous year's figure (2015: CHF 982 million).

With a volume of CHF 1'663 million (2015: CHF 1'356 million), investments were at a very high level in 2016, once again making Migros a key economic partner in Switzerland and helping to safeguard thousands of jobs.

Retail sales in the core business, i.e. the net sales of all Migros retail companies, increased slightly in nominal terms by 1.2% to CHF 23.269 billion (previous year: CHF 22.996 billion). Average inflation within Migros amounted to -0.9%. The effect of negative inflation on retail sales corresponded to approx. CHF 200 million. On an inflation-adjusted basis, growth was +2.1%.

Net sales of the ten Cooperatives (including other countries) increased by CHF 21 million to CHF 15.6 billion (+0.1%) in nominal terms. Abroad, the sales of Migros France declined by 0.9% to EUR 119 million and those of Tegut increased by 1.5% to EUR 996 million.

Demand for regional and sustainable products and allergy-friendly ranges was even stronger in 2016. CHF 2.854 billion worth of products offering ecological or social added value were sold in total (+6.6%). Products carrying the aha! quality label, which are suitable in particular for customers with allergies or intolerances, recorded a 22.2% increase in sales.

M-Industry strengthens market position

M-Industry further strengthened its market position in Switzerland and abroad, generating sales of CHF 6.389 billion (previous year: CHF 6.255 billion). This represents an increase of 2.1%. The growth of the overseas locations was driven mainly by the acquisitions of Ondal France S.a.r.l. and Idhéa.

Migros Bank continued its stable performance in 2016; the investment business was expanded further.

Hotelplan Group

The Strategic Business Unit Travel was faced with challenging geopolitical events in some core destinations. The net sales of the Hotelplan Group fell by 1.6% in total to CHF 1.284 billion (previous year: CHF 1.305 billion). Most of the decline was due to customer uncertainty, hesitant bookings and a corresponding drop in the number of passengers.

Migros Bank

Despite the challenging market environment, Migros Bank continued its stable performance in its core business. The investment business was further expanded in 2016. The number of asset management mandates increased by 10.9% and customer deposits rose by 1.7% to CHF 32.8 billion.

Social commitment

From the sales revenue of Cooperative Retailing, Migros Culture Percentage once again invested CHF 120 million in culture, society, education, leisure and business in 2016, including in the Migros Culture Percentage Classics series of concerts, the Migros Museum of Contemporary Art and the dance festival Steps. Migros Culture Percentage, which goes back to the original idea of Gottlieb Duttweiler and has been incorporated in the Migros statutes since 1957, represents a voluntary commitment that is unique anywhere in the world.

The Engagement Migros development fund was set up in 2012 to supplement Migros Culture Percentage. With the fund, the companies from the Strategic Business Units Commerce, Financial Services and Travel undertake to invest 10.0% of their dividends in supporting projects in the areas of culture, sustainable development, business and sport. A total of CHF 11 million was made available in 2016 (CHF 10 million spent).

With the Christmas donation campaign, Migros customers showed their strong support for people in need in Switzerland. More than CHF 2.8 million in donations was raised, towards which Migros put an extra CHF 1 million. The funds were donated to four Swiss aid organisations.

Surveys carried out in the reporting year showed that customer satisfaction is very high. Migros customers are very satisfied with the selection of products, range of services and value for money.

Social responsibility as a basic principle

At the end of 2016, the Migros Group employed 102'851 staff (+2.5%), 87'000 of whom were based in Switzerland, equating to an increase of 1.5% (2015: 86'086). Migros therefore continues to be the largest private employer in Switzerland. With above-average employee benefits and a working environment that values every employee, it takes its responsibility to staff 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 responsibility and adheres to the ten principles of the UN Global Compact, among other things.

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.

Passionately committed to improving quality of life

Migros' guiding principle

Migros will continue to pass on efficiency gains and lower procurement costs to its customers in the form of lower prices. It will continue to actively promote online shopping and do all it can to offer the best value for money. At the same time, it promises to build on its social and environmental commitment and meet its social responsibilities, as well as continuing to strengthen its business performance.

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

Andrea Broggini, Chairman of the Board of Directors Herbert Bolliger, Chief Executive Officer

The Chairman's and CEO's Review (pdf, 288.40 KB)