Migros Annual Report 2017

2017 in Brief

The Migros Group generated sales of CHF 28.1 billion in 2017, representing an increase of 1.2%. Despite the challenging economic environment, retail sales also increased by 1.0% to CHF 23.5 billion in nominal terms.

The Chairman's and CEO's Review

Dear ladies and gentlemen,

In 2017, the sales of the Migros Group were affected primarily by the shift from in-store to digital retailing, but also by negative currency effects, which were felt by the travel business in particular. Other negative factors included deflation across the Migros product ranges and persistent shopping tourism to bordering countries, the volume of which is estimated to be about CHF 11 billion.

Challenging market environment

Despite the challenging conditions, the Migros Group performed solidly in 2017. Total sales increased by CHF 333 million (+1.2%) to CHF 28.1 billion. This shows that Migros is responding to the changes in consumer behaviour in the right ways. With its various online offerings, it was able to further extend its undisputed leading position in the area of e-commerce.

The Migros Group's earnings before interest and taxes (EBIT) were CHF 603 million in the reporting year, 33.8% below the previous year (2016: CHF 911 million).

With a volume of CHF 1'476 million (2016: CHF 1'663 million), investments remained at a high level. Thus, Migros was once again a key economic partner in Switzerland in 2017 and helped to safeguard thousands of jobs.

Retail sales in Switzerland and abroad (before VAT) increased to CHF 23.5 billion in nominal terms (2016: CHF 23.3 billion), corresponding to growth of 1.0%. Average inflation within Migros amounted to -0.3%.

Net sales of the Cooperatives (including other countries) decreased by CHF 77 million to CHF 15.6 billion (-0.5%). Abroad, the regional Cooperatives generated sales of CHF 1.2 billion, representing growth of 2.6%, or CHF 31 million; Tegut was the main contributor with a sales increase of 3.7%, or CHF 40 million, to CHF 1.1 billion. Sales at Migros France were down by 6.4% to CHF 122 million.

Regional and sustainable products remained on a growth course, with CHF 960 million (+2.0%) of products from the range "Aus der Region. Für die Region." (From the region. For the region.) sold. With sales of CHF 3 billion (+3.9%), products with ecological or social added value were also very popular. The Migros organic range and the TerraSuisse sustainability programme accounted for more than half of this volume. At a total of CHF 4 billion, sales of products carrying sustainability and regional labels and the health label "aha!" (CHF 87 million) were up by 3.3% on the previous year.

To pursue the mission incorporated in Migros' statues – i.e. to support a healthy lifestyle among the Swiss population – Migros again stepped up its activities in the area of health. The comprehensive medical and therapeutic range of Medbase saw total sales increase by 6.0% to CHF 139 million. The newly launched digital platform iMpuls provided the public with tips and support for leading a healthy lifestyle.

With the expansion of its fitness formats and the acquisition of Silhouette Wellness SA, Migros further extended its leading position in the fitness market; at the end of 2017, it had 226'600 members (+19.3%). Based on the number of members, the market share in Switzerland is about 25%.

M-Industry strengthens market position

M-Industry further strengthened its market position in Switzerland and abroad. It generated sales of CHF 6.5 billion (2016: CHF 6.4 billion), representing an increase of 2.1%. This growth was largely due to higher export sales (+10%) and the creation of new businesses.

Hotelplan Group

Net sales generated by the strategic business unit Travel were 1.2% up on the previous year on a comparable basis, despite challenging geopolitical events in some core destinations. However, due to the sale of Hotelplan Italia and the markedly weaker pound sterling, net sales declined by 5.6% to CHF 1.2 billion (2016: CHF 1.3 billion).

Migros Bank

Despite the challenging market environment, Migros Bank continued its stable performance in its core business. The investment business was further expanded in 2017. The number of asset management mandates increased by 17.9% and customer deposits rose by 1.7% to CHF 33.3 billion.

Social commitment

From the sales revenue of Cooperative Retailing, Migros Culture Percentage once again invested CHF 122 million in culture, society, education, leisure and business in 2017; for example, in the Migros Culture Percentage Classics series of concerts, the Migros Museum of Contemporary Art and the promotion of young talent. Migros Culture Percentage, which goes back to the original idea of Gottlieb Duttweiler and has been incorporated in Migros' statutes since 1957, represents a voluntary commitment that is unique worldwide.

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% of their dividends in supporting projects in the areas of culture, sustainable development, business and sport. A total of CHF 11.3 million was made available in 2017 (CHF 14.8 million spent).

Social responsibility as a basic principle

At the end of 2017, the Migros Group employed 105'456 staff (+2.5%), 89'516 of whom were based in Switzerland, equating to an increase of 2.4% (2016: 87'414). 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 towards 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.

Migros will continue to pass on efficiency gains and lower procurement costs to its customers in the form of lower prices. Migros will continue to offer the best value for money, extend its leading position in e-commerce and enhance its range of health services. At the same time, it promises to build on its social and environmental commitment and meet its social responsibilities, and continue to strengthen its business performance.

Migros has made a long-term commitment to protecting the environment, promoting sustainable consumption, and interacting with society and employees in a socially responsible and exemplary way. This principle of sustainability is firmly established in Migros' Mission Statement and in its group strategy. This is fully in keeping with the guiding principle of a passionate commitment to improving the quality of life of Cooperative members and customers.

Retail is faced with two main challenges: the shift from in-store to digital retailing, and shopping tourism (both online and in-store in bordering countries). Courageous decisions will continue to be called for in the future in order to adapt the company to these changes.

Andrea Broggini
Chairman of the Board of Directors

Fabrice Zumbrunnen
Chief Executive Officer

Sales in 2017 CHF 28.1 billion

All key figures for 2017


Key Figures 2017

In million CHF
except where indicated
2013 2014 2015 2016 2017 Change compared to previous year
Income 26'737 27'375 27'406 27'738 28'071 1.2%
of which income before financial services business 25'846 26'502 26'546 26'921 27'292 1.4%
of which Migros retail sales 22'867 23'052 22'996 23'269 23'490 1.0%
of which (income) of the Cooperatives 15'844 15'910 15'613 15'634 15'557 -0.5%
Total Migros distribution sites 639 648 659 685 701 2.3%
Total Migros sales area 1'348'664 1'362'083 1'377'633 1'397'454 1'402'169 0.3%
EBITDA (earnings before interest, taxes, depreciation and amortisation) 2'266 2'392 2'314 2'281 2'103 -7.8%
as % of income 8.5 8.7 8.4 8.2 7.5
of which EBITDA of the retail and industry sector 1'986 2'076 2'000 1'981 1'795 -9.4%
EBIT (earnings before interest and taxes) 1'044 1'126 982 911 603 -33.8%
as % of income 3.9 4.1 3.6 3.3 2.1
Profit 1 771 826 791 663 503 -24.2%
as % of income 2.9 3.0 2.9 2.4 1.8
Cash flow from operating activity 1'225 2'362 2'696 2'503 1'170 -53.2%
as % of income 4.6 8.6 9.8 9.0 4.2
of which cash flow from the retail and industry sector 688 1'703 2'047 1'658 1'619 -2.4%
Investments 1'324 1'641 1'356 1'663 1'476 -11.2%
Equity 15'969 15'970 16'802 17'455 17'913 2.6%
as % of balance sheet total 27.2 26.4 27.0 27.5 27.7
of which equity of the retail and industry sector 13'663 13'548 14'181 14'646 14'931 1.9%
as % of balance sheet total 65.1 65.4 66.5 67.5 67.3
Balance sheet total 58'809 60'585 62'138 63'537 64'581 1.6%
of which balance sheet total of the retail and industry sector 20'984 20'709 21'323 21'703 22'176 2.2%
Migros Cooperative
Number of Migros cooperative members 2'136'959 2'155'331 2'166'145 2'182'171 2'187'818 0.3%
Workforce (people annual average) 94'276 97'456 100'373 102'851 105'456 2.5%
Full-time positions 68'866 71'056 72'609 74'305 75'302 1.3%
Trainees 3'495 3'650 3'700 3'775 3'860 2.3%
Society & culture
Migros Culture Percentage expenses 120 122 120 120 122 1.8%
Expenses Engagement Migros development fund (Migros Group) 2 5 6 9 10 15 42%
Total sales of sustainable, health and regional label Cooperative Retailing 3'079 3'400 3'648 3'881 4'010 3.3%
Greenhouse gas emissions, absolute (in 1000 tonnes CO2-eq) 316.40 302.24 305.59 302.23 286.82 -5.1%
Energy consumption, Migros group (in GWh) 1'765 1'699 1'765 1'775 1'744 -1.7%
Installed solar power plants owned by Migros (in kWp) 10'473 13'795 21'402 27'055 27'832 2.9%
Migros Group, rail transport kilometrage
(in km million)
11.3 11.6 11.5 12.5 13.3 6.6%
Recycling rate (in %) 75.9 76.8 78.0 77.7 77.8 0.1%

1 2013 IFRS, before effect from pension plans

2 Funds made available for the first time in 2012.


Migros launches the health initiative iMpuls

Migros expands its range of health-related services by launching a digital platform with editorial content. The company is thus helping the population to maintain a healthy lifestyle in four areas: nutrition, exercise, relaxation and medicine. Migros' health services are combined under the iMpuls brand alongside the medical services of Medbase.


Migros launches the Migusto cooking club

Migros combines its culinary expertise under the Migusto brand. At the centre of this lies the cooking club Migusto. It offers numerous advantages for its members, who include ambitious amateur chefs, people with little time to cook and novices behind the stove. The platform www.migusto.ch presents seasonal recipe ideas, cooking instructions – and Switzerland's most-visited recipe database.


Fabrice Zumbrunnen is elected new FMC CEO

Fabrice Zumbrunnen, Head of Human Resources, Cultural & Social Affairs, Leisure since 2012 and a member of the FMC Executive Board, is elected as the new CEO of the Federation of Migros Cooperatives by the Board of Directors. The 47-year-old from western Switzerland commences his new role on 1 January 2018. He replaces Herbert Bolliger, who retires at the end of 2017 after 13 years at the helm of Migros.

Migros enjoys the best reputation

For the fourth time in succession, the Federation of Migros Cooperatives is named Switzerland's most renowned company by GfK Business Reflector 2017. In the assessment of social and environmental commitment in particular, Migros is way ahead of other companies in the ranking. Second place is occupied by Rega and third by Ricola.

Fiore di pietra opens on Monte Generoso

On Monte Generoso, the striking Fiore di pietra, designed by Ticino architect Mario Botta, is officially opened. The building, shaped like a stone flower, offers a spectacular panoramic view, a gourmet restaurant and a self-service restaurant, and a modern conference infrastructure. The new landmark opens to the public in April 2017.


Sarah Kreienbühl elected new Head of the department I

The Board of Directors of the Federation of Migros Cooperatives elects Sarah Kreienbühl as the new Head of Human Resources, Cultural & Social Affairs and a member of the FMC Executive Board. Kreienbühl, previously Group Vice President Corporate HRM & Communications and a member of the management board at Sonova AG, replaces Fabrice Zumbrunnen on 1 January 2018.

Acquisition of Hitzberger and Hug Bäckerei

Migros Cooperative Zurich acquires catering company Hitzberger, which sells high-quality fast food products with organic ingredients. With retroactive effect from 1 January 2017, Migros subsidiary Jowa AG acquires a majority stake in Hug Bäckerei AG, which specialises in the semi-industrial production of fresh and frozen bread and baked goods.


M-Industry enters online market in China

M-Industry forms partnerships with the Chinese online retail platforms Kaola and (from December 2017) Tmall, which belongs to the Alibaba Group. Under the name "Orange Garten", it sells a selected range of Migros products, such as coffee, snacks and drinks. Plans are in place to expand the product range.


New clothing for Migros sales staff

The sales staff in the Migros stores are given new uniforms. Swiss designer Ida Gut, who created the collection 12 years ago, is again in charge of the concept. The design and materials of the existing clothing are improved. Paprika is kept as the base colour of the shirts and blouses, while the outerwear colour is changed to garnet.


Federal Councillor Simonetta Sommaruga to attend the Assembly of Delegates

Federal Councillor Simonetta Sommaruga, head of the Federal Department of Justice and Police (EJPD), has accepted an invitation to attend the FMC Assembly of Delegates as a guest. In an discussion with journalist Esther Girsberger, she will talk about the topic of "women in managerial posts – how to succeed". Sommaruga's appearance will mark the first time that a government representative has made an appearance at the FMC Assembly of Delegates.

The Mall of Switzerland opens

The Mall of Switzerland, the second-largest shopping centre in the country, opens in Ebikon (LU). It contains about 90 stores across four floors and offers a wide range of food and entertainment options (including a cinema). Migros Cooperative Lucerne is the mall's main leaseholder and is represented there with the region's largest MMM branch, numerous specialist markets and a Migros restaurant.

The Migros Group launches an extensive careers portal

Migros is the largest private-sector employer in Switzerland. Under the title "Migros Group Working World", the new careers portal publishes all vacancies at the 60+ companies of the Migros Group. The portal also provides information about working conditions at Migros, entry and career opportunities within the group, and employee profiles.


New umbrella campaign launched

Under the title "Die Migros gehört den Leuten. Und das merkt man." (Migros belongs to the people. That's plain to see), Migros launches a new advertising campaign that focuses on the company's owners; i.e. the more than 2.2 million members of the regional Cooperatives. The campaign emphasises Migros' proximity to its customers and invites them to become members themselves.

Strategic business units

Due to the division into five strategic business units and Shared Services, the management of Migros is simple and effective. The six units are each managed by a member of the Executive Board. Cooperative Retailing is an exception here, as the regional Cooperatives are legally independent and managed only indirectly by the FMC.

Cooperative Retailing

In 2017, sales of the ten Migros Cooperatives in Switzerland and abroad fell to CHF 15.6 billion. 

Cooperative Retailing

In 2017, sales of the ten Migros Cooperatives in Switzerland and abroad fell to CHF 15.6 billion. This is attributable in particular to the deflation of -0.4% across the Migros product ranges and the shift from in-store to online retailing.

Financial results Cooperative Retailing

In CHF million 2017 2016 Change compared to previous year
Net revenue from goods and services sold
Cooperatives incl. other countries 15'557 15'634 -0.5%
Medbase (Medbase Group and santémed health centers) 139 131 6.0%
FMC 5'189 5'174 0.3%
Logistics 359 344 4.3%
Other companies 336 295 14.1%
Net revenue from goods and services sold 21'580 21'578 0.0%
Other operating income 250 197 27.0%
Eliminations -4'934 -4'975 -0.8%
Total income 16'896 16'799 0.6%
Earnings before interest and taxes (EBIT) 306 542 -43.7%
Segment assets 10'570 10'364
Investments in long-term assets 945 1'156
Employees 69'573 68'535

Distribution network Cooperative Retailing figures

Number of sites Sales area (m2)
2017 2016 2017 2016
Distribution sites Switzerland
Migros sites
M 345 336 280'268 272'252
MM 209 211 479'315 483'564
MMM 49 48 376'440 370'567
Total 603 595 1'136'023 1'126'383
MParcs/specialist market centres/Obi 39 40 240'573 249'878
Single-line stores 1 36 32 22'251 18'786
Total 75 72 262'824 268'664
Independent gastronomy businesses 23 18 3'322 2'407
Total sites 701 685 1'402'169 1'397'454
Distribution lines Switzerland
M, MM and MMM 603 595 926'241 918'847
Other supermarkets 2 9 10 11'940 13'194
Total supermarkets 612 605 938'181 932'041
Specialist markets
Do it + Garden 45 46 104'345 108'767
Micasa 32 29 74'529 74'354
SportXX 60 58 73'134 70'929
Melectronics 75 75 36'397 36'406
Obi DIY superstore/garden 10 10 81'303 81'303
Total specialist markets 222 218 369'708 371'759
Migros Gastronomy
M-Restaurants 162 165 79'580 80'326
Takeaways and other gastronomic formats 3 151 150 14'700 13'328
Total Gastronomy 313 315 94'280 93'654
Distribution sites other countries
France (Migros France)
MMM 2 2 10'883 10'789
MM 1 1 1'638 1'638
Tegut 273 272 288'383 290'361
Total other countries 276 275 300'904 302'788
Wholesaling cooperatives and other
Migros Partners 47 48 - -
VOI 44 39 - -
Leisure, health and foundations
Migros Fitness Switzerland 4 121 90 - -
Migros Fitness outside Switzerland 5 181 6 - -
Medbase and santémed health centers 47 36 - -
Aquaparcs 6 3 3 - -
Sportparcs 3 3 - -
Golfparcs 8 9 - -
Foundations ‘Park im Grünen’ and Monte Generous 5 5 - -

1 Outlets, Alnatura Bio supermarkets, independent Outdoor by SportXX stores, etc.

2 integrated in MParcs or specialist market centres

3 Chickeria, My Way, Kaimug, Bio Take Away, Coffee&Time as well as Frau Helvetia

4 including Activ Fitness, Flower Power - Finest Fitness&Wellness, ONE Training Center, MFIT, M-Fitnesscenter, Only Fitness, Silhouette, Injoy (CH)

5 Elements (DE) and Injoy (AT, BE, DE)

6 Säntispark, Bernaqua, Vitam (FR)

In 2017, Cooperative Retailing was dominated by a competitive market environment, average deflation of -2.7% in the specialist markets and -0.2% in the supermarkets and hypermarkets, as well as an increasing shift from in-store to online retailing. Shopping tourism to bordering countries, the volume of which is estimated to be about CHF 11 billion, also had a negative impact. In Switzerland and abroad, the ten regional Cooperatives generated sales of CHF 15.6 billion (-0.5%). Footfall remained stable, with 344.9 million till receipts.

Supermarket and hypermarket sales in Switzerland came in at CHF 11.6 billion (-0.8%). Abroad, the ten regional Cooperatives generated sales of CHF 1.2 billion, representing an increase of 2.6% or CHF 31 million. With sales of CHF 1.1 billion (+CHF 40 million), Tegut was the main contributor to this growth. Sales at Migros France were down by 6.4% to CHF 122 million.

The five Migros specialist markets Micasa, SportXX, Melectronics, Do it + Garden and OBI generated sales of CHF 1.6 billion (+0.9%) in 2017. Adjusted for deflation of -2.7%, this figure is up 3.6% in real terms in comparison with the previous year. The online shops of the specialist markets reported growth of 25.0% to CHF 65 million.

At CHF 676 million, sales at Migros Catering were 0.9% lower than in the previous year. The new catering formats, such as Chickeria (+69.4%) and community catering (+3%), continued to perform well.

At the end of 2017, Migros' sales network comprised a total of 701 locations, 16 more than in the previous year. The total sales area for the supermarkets, specialist markets and catering services increased by 4'715 m2 to 1'402'169 m2 (+0.3%).

Sales of sustainable products up considerably

Sales of sustainable and regional Migros products saw above-average growth. Customers bought CHF 3.0 billion worth of products with ecological and/or social added value (+3.8%) and CHF 960 million (+2%) worth of products bearing the label "Aus der Region. Für die Region" (From the region. For the region). At a total of CHF 4.0 billion, sales of products carrying sustainable/regional labels and the health label "aha!" (CHF 87 million) were up by 3.3% on the previous year.

As part of the Generation M sustainability programme, launched in 2012, Migros has made a total of 67 binding promises to tomorrow's generation. By the end of 2017, 41 promises had already been fulfilled.

1 6


In 2017, the Migros retail companies focused on meeting changing customer requirements both in-store and online. 


In 2017, the Migros retail companies focused on meeting changing customer requirements both in-store and online. In a challenging market environment, the Commerce Department increased its sales by 3.9% to CHF 7.8 billion.

Financial results Commerce

CHF million 2017 2016 Change compared to previous year
Net revenue from goods and services sold
Denner AG 3'050 2'959 3.1%
Migrol AG 1'410 1'290 9.3%
Magazine zum Globus AG 857 879 -2.5%
Digitec Galaxus AG 834 704 18.5%
Depot (Gries Deco Company GmbH) 540 501 7.7%
migrolino AG 480 431 11.3%
Le Shop S.A. 181 182 -0.5%
Interio AG 154 168 -8.1%
Office World Group 1 144 179 -19.5%
Ex Libris AG 109 112 -3.0%
Dolphin France SAS (Probikeshop) 2 10 75 -87.3%
Other companies 71 63 12.8%
Net revenue from goods and services sold 7'840 7'544 3.9%
Other operating income 151 80 89.8%
Eliminations -53 -21 147.0%
Total income 7'938 7'602 4.4%
Earnings before interest and taxes (EBIT) -83 -87 5.3%
Segment assets 2'072 2'103
Investments in long-term assets 223 225
Employees 17'369 16'742

1 Sales 2017 of Office World group were taken into account until the company was sold

2 Sales 2017 of Probikeshop were taken into account until the company was sold

Distribution network Commerce figures

Number of sites Sales area
2017 2016 2017 2016
Denner 811 809 - -
Denner branches 522 510 210'552 207'182
Denner satellites (incl. Denner Express) 289 299 - -
Globus (Magazine zum Globus AG) 81 84 131'949 132'081
Globus department stores 1 15 16 81'842 81'702
Herren Globus 23 24 13'367 13'534
Schild AG 1 2 43 44 36'740 36'845
Interio AG 11 11 44'073 44'073
Depot Switzerland 39 36 18'000 17'797
Depot (Germany and Austria) 601 522 255'031 230'886
Office World 3 - 26 - 17'522
Ex Libris AG 57 69 5'624 6'790
Total petrol stations 307 313 - -
Migrol Auto Service/Migrol Service 144 144 - -
Petrol stations (automated) 163 169 - -
Convenience stores (migrolino and Migrol shops) 144 144 - -
Convenience stores 357 354 - -
migrolino 4 311 307 - -
Migrol shops 46 47 - -

1 incl. outlets (2 Globus, 4 Schild)

2 incl. Schild brand stores

3 The Office World Group was sold on 01.12.2017

4 These locations are divided into stand-alone migrolinos, Migrol migrolinos, Shell migrolinos, Socar migrolinos and Piccadilly migrolinos.

The priority for the business operations in 2017 was to focus consistently on meeting customer requirements across all sales channels. The companies Denner, migrolino, Migrol, Digitec Galaxus, m-way, Le Shop and Ex Libris pursued specific initiatives to boost their market position in the highly competitive retail sector.

Globus and Depot have launched projects to increase long-term efficiency. Interio has been positioned more clearly in the market in relation to Micasa, and potential synergies between the two retail brands have been exploited.

At the same time, new owners were found for Probikeshop, OWiba (Office World, iba and Tramondi Büro) and Sharoo.

Enhancement of market position

Despite strong competition, Denner enhanced its market position as Switzerland's leading discounter with a 3.1% increase in sales. A 4.7% increase in footfall provided further evidence that significantly more customers are shopping at Denner. This was due in particular to the modernisation work performed on a further 194 branches and partner stores. Two more branches were added to Denner's extensive network of sites, taking the total to 811.

migrolino remained on a growth course. By the end of 2017, 311 stores were open to customers (previous year: 307). The company again saw a considerable increase in sales, this time by 11.3% to CHF 480 million.

After a decline in the previous year, Migrol recorded a significant increase in sales of 9.3%, facilitated by the positive price development in the petrol station and petroleum market. Migrol was also able to increase its market shares in the fuel business due to slightly higher sales figures, despite the overall market decline. Migrol thereby extended its leading position.

Digitec Galaxus again achieved encouraging double-digit sales growth (19.4%) in the retail segment. The company thus enhanced its leading position in the B2C electronics market (Digitec). The Galaxus platform was further expanded with additional external retailers and a wider product range. With sales of CHF 834 million (+18.5%), Digitec Galaxus consolidated its position as the online market leader in Switzerland.

m-way recorded a 21.8% increase in sales and consolidated its position as the leader of the Swiss e-bike market in 2017.

Market position defended

In the home delivery business, Le Shop recorded an increase in sales of 3.0%. The online supermarket generated sales of CHF 181 million in total. The slight decline of 0.5% was down to the closure of the two Drive pilot locations.

Ex Libris again faced strong consolidation pressure in in-store retailing. The structural shift to ordering and consuming books, media and games online has continued. Although sales from in-store retailing were negatively affected, online sales increased again (+8%). Eleven branches had to be closed at the start of 2018. Overall, despite a noticeable gain in market share, sales decreased by 3% to CHF 109 million.

Implementation of efficiency measures

In 2017, Globus countered the challenging conditions in the fashion market with the launch of a forward strategy marked by the integration of the two brands Schild and Herren Globus, and by consistent digital transformation. By implementing new store concepts and combining in-store and digital channels, Globus is focusing on meeting customer requirements in the premium segment. The company again faced challenges in the form of a strong franc, shopping tourism and competition from online business, all of which resulted in a 2.5% decrease in sales to CHF 857 million.

Interio again felt the effects of the declining overall market, with sales falling by 8.1% to CHF 154 million. In contrast, online business grew by an encouraging 4.6%.

Combined with stronger implementation of efficiency measures, the Depot network of outlets grew to 479 own branches (previous year 452) and 161 locations at wholesale partners. The company generated consolidated sales of CHF 540 million, representing an increase of 7.7%.

2 6

Industry & Wholesaling

M-Industry generated sales of CHF 6.5 billion in 2017, representing an increase of 2.1%. 

Industry & Wholesaling

M-Industry generated sales of CHF 6.5 billion in 2017, representing an increase of 2.1%. The international business grew by a considerable 14.1% to CHF 901 million; business from the Swiss market increased by 0.4% as a result of acquisitions.

Financial results Industry & Wholesaling

CHF million 2017 2016 Change compared to previous year
Net revenue from goods and services sold 6'520 6'389 2.1%
Other operating income 67 73 -7.9%
Eliminations -594 -544 9.2%
Total income 5'994 5'918 1.3
Earnings before interest and taxes (EBIT) 56 154 -63.9%
Segment assets 2'289 2'352
Investments in long-term assets 216 206
Employees 14'192 13'113

In 2017, the international business (exports and overseas locations) grew by CHF 112 million (14.1%) to CHF 901 million. Export sales were up by 10%, driven mainly by the coffee capsules, chocolate, cosmetics and cheese ranges.

Further sales platforms were set up in China, France, Spain and the Netherlands in order to continue to provide the export business with effective support in the future. Under the name "Orange Garten", M-Industry successfully entered the Chinese market. High quality Migros products are sold to Chinese consumers via leading e-commerce providers.

Optimisation of the portfolio

M-Industry optimised its portfolio in the Swiss market (retailing and bulk consumer business). The Cash+Carry Angehrn (CCA) division was sold, but the overall market position was strengthened due to strategic acquisitions in the fresh food areas of fish (Tipesca), baked goods (majority participation in Hug Bäckerei AG) and dairy/cheese specialities (majority stake acquired in Schwyzer Milchhuus AG).

At CHF 4.5 billion, business with the Migros Group remained at the previous year's level. Migros retail revenues were down (due to inflation, among other factors), but business with Denner, migrolino and Le Shop increased.

Growth through newly established businesses

In the bulk consumer business, M-Industry will continue to focus systematically on the delivery sector under the Saviva brand. Past experience has shown that synergies between the pick-up and delivery wholesale businesses are lower than expected.

Newly established businesses such as Apposito (digital business model in the beverage business), Saviva Health Services and the integration of Tipesca (fish) performed well. Despite the departure of CCA on 30 November 2017, sales were up overall on the previous year, increasing by 2.2% to CHF 1.1 billion.

Investments in the Swiss business areas

M-Industry invested about CHF 216 million in Switzerland as a centre of industry in 2017. There was a strong focus on capacity expansion and rationalisation investments. More investment is being made in automation as part of the "Industry 4.0" programme. With the completion of the new building in Gränichen, Jowa has increased its bread production capacity. The modern bakery combines traditional craftsmanship with intelligent technology. The new building also features a high-bay warehouse and a wood-fired heating plant.

The successful commissioning of the two wood-fired heating plants at Jowa in Gränichen and Elsa in Estavayer-le-Lac has made it possible to cut CO2 emissions by 11'000 t per year. This makes an important contribution to implementation of M-Industry's ambitious sustainability goals.

New apprenticeship positions

M-Industry again increased the number of apprenticeship positions in 2017. Currently, 556 apprentices (18 more than in the previous year) are trained in more than 30 different professions. In 2017 M-Industry employed an average of 14'192 people, which is 1'079 more than in the previous year. 1'215 employees worked abroad.

3 6

Financial Services

Migros Bank expanded its core business in 2017 and further increased its market shares. At 3.7%, the mortgage volume grew above the market average. 

Financial Services

Migros Bank expanded its core business in 2017 and further increased its market shares. At 3.7%, the mortgage volume grew above the market average. The performance of the investment business was also encouraging.

Financial results Financial Services

CHF million 2017 2016 Change compared to previous year
Net revenue from goods and services sold 3 3 -20.2%
Income from financial services business 779 817 -4.7%
Other operating income 2 6 -75.0%
Total income 783 827 -5.3%
Earnings before interest and taxes (EBIT) 280 270 3.7%
Segment assets 43'277 42'718
Investments in long-term assets 17 23
Employees 1'479 1'507

Migros Bank remained on a growth course in 2017. In the investment business, the number of asset management mandates increased by 17.9%. The range of funds was also expanded: Migros Bank now offers both traditional and sustainable investment funds for every investment strategy. It thus has one of the widest and most comprehensive portfolios in Switzerland for sustainable strategy funds. Not least due to the launch of new investment vehicles, the fund volume increased by 19.2% to CHF 2.5 billion. The total of all funds and securities held by customers in Migros Bank custodian accounts rose by 12.9% to CHF 12.3 billion.

Customer deposits also saw an increase. Liabilities arising from customer deposits rose by 1.7% to CHF 33.3 billion. The number of private accounts grew by 8% and pillar 3a retirement accounts by 2.4%.

Cautious lending policy

Customer lending saw an even greater increase than customer deposits. Mortgage lending increased by 3.7% to CHF 35.5 billion. As a result, Migros Bank was Switzerland's fifth largest mortgage lender in the reporting year. In a highly competitive environment, Migros Bank firmly maintained its cautious lending policy. On the balance sheet date, 97.6% of the portfolio of mortgages on residential properties consisted of first priority mortgages.

Receivables from private lending amounted to CHF 1 billion, corresponding to a decrease of -6%. Despite the generally declining market, Migros Bank was still the third largest provider of consumer credit.

Investments business: positive driver

Net interest income increased by 1.2% to CHF 452 million in the reporting year. Commission income improved by as much as 10.4% to CHF 98 million, due in particular to the positive trend in the investment client business. At CHF 34 million, trading income was down slightly (-0.5%). The operating income of Migros Bank rose by 2.9% overall to CHF 592 million.

Despite strong expansion of the core activities, total operating expenses rose by only 0.6% to CHF 280 million; material expenses increased by 3.2% and personnel costs saw a 0.9% decrease. The workforce consisted of 1'319 full-time staff, compared with 1'327 in the previous year.

After being at an encouragingly low level in the previous year (47.2%), the cost/income ratio improved even further to 46.5%. After taking into account depreciation, provisions and losses, operating income and profit amounted to CHF 281 million, representing an increase of 5.7%. After accounting for extraordinary items and taxes, a profit of CHF 223 million was generated, 3.9% more than in the previous year. After the voluntary creation of reserves for general banking risks, this resulted in a decrease of 6.5% to CHF 201 million.

New organisational structure

The new, streamlined organisational structure of Migros Bank came into effect on 1 January 2017. Among other things, the management matrix has been abolished in favour of standardised line and functional management. At the same time, the distinction between management and extended management was waived. One of the aims of the reorganisation was to make the sales management more efficient in order to be able to respond faster to market changes and launch promising innovations more quickly. Another objective was to expand the corporate client and investments business.

Expansion of the cash withdrawal network

The option of free cash withdrawals for customers of Migros Bank was extended to Migrolino petrol station shops and Denner branches in 2017. As a result, cash can now be withdrawn at about 1'800 sales outlets of the Migros Group. Together with the more than 220 cash machines of Migros Bank, this makes up one of the most extensive networks in Switzerland for free cash withdrawals.

4 6


The Hotelplan Group's sales in the 2016/2017 financial year were in line with expectations, and the margins were improved considerably.


The Hotelplan Group's sales in the 2016/2017 financial year were in line with expectations, and the margins were improved considerably. In a year that proved challenging in an operational sense, the Hotelplan Group generated net sales of CHF 1'212 million.

Financial figures Travel

CHF million 2017 2016 Change compared to previous year
Net revenue from goods and services sold 1'212 1'284 -5.6%
Other operating income 9 8 11.9%
Total income 1'221 1'292 -5.5%
Earnings before interest and taxes (EBIT) 5 -12 142.9%
Segment assets 13 29
Investments in long-term assets 7 5
Employees 2'709 2'822

In 2017, the travel business was again affected by terror attacks and natural disasters. Nevertheless, the Hotelplan Group recorded a 5.5% rise in the number of passengers. However, due to the sale of Hotelplan Italia and the much weaker pound sterling, the Group's net sales were down by 5.6% to CHF 1'212 million for the financial year ending 31 October 2017.

Positive development in Switzerland

The Swiss market leader Hotelplan Suisse, together with the business travel specialist bta first travel, generated net sales of CHF 559 million in the reporting year (invoiced sales CHF 715 million). With a share of 46%, the Swiss subsidiary is Hotelplan Group's largest business unit. Despite terror attacks and natural disasters, such as the earthquakes on Kos and in Bodrum and the hurricanes in the Caribbean and Florida, Hotelplan Suisse (excluding bta first travel) was able to increase its sales (excluding travel.ch) by 1.4%. The tendency to book early, coupled with the sustained enthusiasm for travel, also resulted in a 0.6% increase in the number of passengers to 523'000.

The business travel specialist bta first travel is a successful element of the Hotelplan Group. It was able to expand its customer portfolio in the SME segment in 2017. Invoiced sales in the business travel segment increased by 6.2% to CHF 124 million; this was due partly to the booking portal btaONLINE.

Increase in holiday home bookings

In the newly created Holiday Home Division, comprising the two holiday home agencies Interhome and Inter Chalet, the trend towards vacations in holiday homes and holiday cottages showed no signs of abating. This is reflected in invoiced sales of CHF 332 million, up 3% on the previous year. The synergies between the two agencies affected the result positively, as did the use of various online sales channels.

Good results in the United Kingdom

Calculated in the local currency, the sales of Hotelplan UK were up by 3.2%. Converted into Swiss francs, however, they were down slightly to CHF 319 million. The effects of Brexit are particularly noticeable in the ski area, as this customer segment is price-sensitive and travel abroad has become more expensive due to the weaker pound. The most growth in the UK was recorded by the walking and cycling holiday specialist Inntravel and the soft adventure provider Explore.


Start-up with potential

The booking platform bedfinder is currently still an investment for the Hotelplan Group, but with net sales of CHF 2 million (invoiced sales CHF 14 million), the travel services provider is showing great potential. Travel services can be booked worldwide on its own site bedfinder.com or via Book-on-Google without leaving the Google search platform.

Hotels in the US were offered for the first time in 2016 and Book-on-Google was rolled out in the UK. Additional markets were added in 2017 with Canada, New Zealand, Ireland, Spain, Sweden and Belgium. The platform provides interested partners with additional white-label products, fulfilment services and technological assistance. In addition to the roll-out of bedfinder.com, the hotel search portal Trivago was used as an additional sales channel alongside Book-on-Google.

5 6

Shared Services

The Logistics & IT Department – Shared Services – optimised further services along the national and international supply chain in 2017.

Shared Services

The Logistics & IT Department – Shared Services – optimised further services along the national and international supply chain in 2017.

Shared Services combines the competence centres of six operationally and strategically independent areas: logistics, IT, transport, engineering, planning/expansion and quality assurance. For all entities of the Migros Group, they provide standardised solutions, where possible, and which are oriented towards overriding objectives and requirements.

Logistics: optimisation & expansion

In the area of logistics, the main focus in 2017 was on improving efficiency along the entire value-added chain. Further processes were optimised at the Migros Distribution Centre in Suhr (Food). Furthermore, a project was launched to provide logistics capacity by 2025.

In addition to ongoing process optimisations, the Migros Distribution Centre in Neuendorf (non and near-food products, textiles and frozen produce) has an on-going expansion project that will increase the level of automation by 2021 and concentrate storage in one location.

Transport: economical & ecological

The changing customer requirements – longer opening hours, cross-channel delivery and online shopping – are calling for new transport solutions. In 2017, Shared Services successfully implemented its efficient and environmentally friendly transport concepts.

  • Clever volume bundling and an intelligent combination of all modes of transport (road, rail and intermodal) enable cost-effective, fast and economical transport solutions. In international transport, this was achieved in particular through expansion of the southern port connection. More than 50% of goods from the Far East passed through the Mediterranean ports in 2017.
  • Migros also made more use of rail freight again. The number of conveyed rail wagons in domestic traffic rose by 3%, while the number of rail kilometres was up by 7%. Through optimisation in the national distribution centre in Buchs AG, it was possible to increase the annual shipment capacity.
  • Efforts in the area of rail innovation were stepped up considerably in 2017, and an innovative information system was introduced to optimise business operations through use of rail.
  • Migros agreed an innovation partnership with the Swiss Federal Laboratories for Materials Science and Technology (EMPA) to assess the possibility of achieving the 'two degrees' climate policy target (Paris climate conference) from the perspective of freight transport.
  • In addition, Migros supported the national generational project Cargo sous Terrain with a further CHF 100'000 to the newly formed Cargo sous Terrain AG, and is committed to investing a total of CHF 5 million in capital for the project's planning permission phase between 2019 and 2023. Migros is represented on the board of directors of Cargo sous Terrain AG and other committees.

IT: digitalisation & consolidation

In 2017, the main focus in Migros IT Services was again on digitalisation and consolidation, in particular:

  • In Migros Cooperative Lucerne, the new POS checkout system Avanta went live in the first pilot branches. A future-oriented and innovative solution that helps to meet the requirements of in-store and online business in an optimum way has thus been implemented.
  • SAP F&R (Forecast and Replenishment) was implemented in more than 350 supermarkets. The system enables improved algorithms and individual demand factors for each brand. As a result, stock levels in the branches were improved considerably in 2017, leading to less food waste and inventory gaps.
  • The mobile terminals used for inventory management in the Migros stores were also updated. More than 9'000 mobile devices were replaced with robust, state-of-the-art touchscreen computers and mobile printers.
  • In the roll-out that has been underway since 2014, about 10'000 standard PC workstations have already been reconfigured in the "orange M" companies. The roll-out to the subsidiaries Aproz and Elsa/Mifroma and to Migros Cooperative Vaud was completed in 2017.

Engineering: resource efficiency

Various construction and conversion projects were planned and implemented throughout the Migros Group in 2017, such as Jowa's new wood-fired heating plant in Gränichen and Digitec Galaxus' extended logistics warehouse in Wohlen. The main focus here was on resource efficiency, in particular in the operation of equipment and buildings.

6 6

2017 in Brief (pdf, 1.80 MB)