Finance

Income Trend (Sales Trend)

In 2017, Migros Group generated total sales of CHF 28.1 billion and achieved growth of CHF 333 million (+1.2%).

In the Retail and Industry sector, income increased by CHF 381 million to CHF 27.3 billion (+1.4%). In the core retailing business, sales in Switzerland and abroad totalled CHF 23.5 billion (CHF +221 million or +1.0%). Retail sales abroad comprise the sales of Migros France, Tegut Group, Gries Deco Group in Germany and Austria, and Probikeshop. Compared to the previous year, retail sales abroad decreased by CHF 2 million to CHF 1.8 billion (-0.1%, including the sale of Probike).

In the Financial Services sector, income fell by a total of CHF 44 million to CHF 783 million, due in particular to the low interest-rate level.

Income trend (sales trend) in the Retail and Industry sector

Total Retail and Industry sector CHF 27.3 billion

All key figures in detail

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Total income trend

in CHF million 2017 2016 Change from previous year
in %
Cooperative Retailing 16'896 16'799 0.6
Commerce 7'938 7'602 4.4
Industry & Wholesaling 5'994 5'918 1.3
Travel 1'221 1'292 -5.5
Others 115 119 -3.2
Eliminations (within Retail and Industry sector) -4'860 -4'806
Total Retail and Industry sector 27'305 26'923 1.4

Cooperative Retailing

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.

Cooperative Retailing

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.

Stable sales trend in Cooperative Retailing amid continuing shopping tourism.

At CHF 14.3 billion, domestic sales of the ten regional Cooperatives fell slightly compared to the previous year (CHF -108 million, or -0.8%). Sales of CHF 1.2 billion (CHF +31 million, or +2.6%) were generated abroad. Total sales fell by CHF 77 million to CHF 15.6 billion (-0.5%). The domestic market share was 15.0% (previous year: 15.0%, new basis in accordance with BAK Basel).

In local currency terms, Migros France suffered a decline in sales of 8.6% year-on-year, to EUR 109 million. Tegut generated sales of EUR 1'008 million (+1.2%).

Migros supermarkets and hypermarkets generated domestic sales of CHF 11.6 billion (-0.8 %, or CHF -98 million). Allowing for average negative inflation of -0.2%, this corresponds to a change in real terms of -0.6% compared to the previous year.

The specialist markets Micasa, SportXX, Melectronics, Do it + Garden and OBI posted sales of 1'617 million (CHF +15 million, or +0.9%) in 2017. Adjusted for negative inflation of -2.7%, the five specialist markets together recorded growth of 3.6% in real terms. The sales trend in the online shops of the specialist markets remains positive, increasing by + 25.0% to CHF 65 million.

PickMup, Migros' practical, free collection and returns network for online orders, attracted large numbers of new partners during the past year. Purchases from 14 different online shops can be collected and returned at over 746 PickMup/store locations in Switzerland.

Regional and sustainable products remain popular

Demand for regional and sustainable products continued to grow in 2017. The "Aus der Region. Für die Region." (From the region. For the region.) range continues to be very popular, posting a sales volume of CHF 960 million (+2.0%). Sales of products with ecological and social added value totalled CHF 2'964 million (CHF +110 million, or +3.8%), with particular highlights including the Migros organic range and the TerraSuisse sustainability programme. Together they account for more than half of sales. At a total of CHF 4'011 million, 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.

As part of Migros' sustainability strategy, a total of 67 commitments have been made to Generation M ("Generation von morgen" or "The generation of tomorrow") since 2012 in the areas of consumption, the environment, employees, society and health. The attainment of targets is monitored on a continuous basis. 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 domestic sales outlets increased by 16 in total to 701 sites at the end of 2017. The sales area for supermarkets, hypermarkets, specialist markets and catering services grew by a total of 4'715 m2 (+0.3%). The productivity per area in supermarkets and hypermarkets in Switzerland totalled CHF 12'593/m2 (-2.0%), while the corresponding figure in specialist markets was CHF 3'818/m2 (+0.0%).

At CHF 676 million, sales in catering were down by 0.9% overall on the previous year. The new business formats, such as Chickeria (+69.4%) and community catering (+3.0%), continued to perform well. With the acquisition of the take-away chain Hitzberger, Migros is positioning itself as an innovative provider in the healthy fast food segment.

In the health sector, Migros was able to consolidate its leading position in the Swiss fitness market with its acquisition of the Silhouette fitness chain. The comprehensive medical and therapeutic range of Medbase saw total sales increase by 6.0% to CHF 139 million. The digital platform Impuls provided the public with a whole range of tips and support for leading a healthy lifestyle.

 

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Commerce

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

Commerce

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

During the reporting year, Office World Group (OWiba) and Dolphin France SAS (Probikeshop) were sold and the majority shareholding in Sharoo was relinquished. Their share of sales in 2017 totalled CHF 153 million (-39.5%).

As a local discounter, Denner, which celebrated its 50th birthday in 2017, posted sales of CHF 3'050 million (+3.1%), thereby increasing its market share further in the highly competitive retailing business. An increase in customers of 5.9% was recorded in its own stores in 2017. At the end of 2017, Denner had 811 stores (previous year: 809). Across the country, Denner began modernising its satellite stores in the reporting year. This will see the design of the outlets adapted to match that of Denner's own stores, and the name will also be changed to Denner Partner.

Rising fuel prices meant that Migrol recorded sales of CHF 1'410 million in 2017 (+9.3%).

Commerce facing great change

For Magazine zum Globus, 2017 was a challenging year marked by upheaval. The first effects of the structural adjustment and the acceleration of the digital transformation introduced with the one-brand strategy (Globus as the premium umbrella brand) are being felt. Total sales of CHF 857 million (-2.5%, adjusted by sales area -2.0%) were generated. Globus department stores recorded sales of CHF 643 million (-2.2%, adjusted by sales area -1.6%), while the corresponding figures for Herren Globus and Schild were CHF 68 million (-0.8%, adjusted by sales area -2.8%) and CHF 146 million -4.5%, adjusted by sales area -3.0%) respectively.

The change in the structure of Ex Libris is also reflected in the 2017 result. Online sales rose by 8.0% and reached a new record figure. However, falls in in-store business reduced overall sales by CHF 3 million to CHF 109 million (-3.0%). Ex Libris will restructure its branch business this year and focus on digitalisation.

Interio generated sales of CHF 154 million (-8.1%) in 2017.

The retail chain Depot (Gries Deco Company abroad and in Switzerland) posted sales of EUR 484 million (+5.2%) or CHF 540 million (+7.7%).

migrolino continues to grow and generated sales of CHF 480 million (+11.3%). At the end of 2017, migrolino had a total of 311 shops (+4).

Le Shop generated sales of CHF 181 million (-0.5%) in 2017. This decline is due to the closure of the two DRIVE locations (pilot collection stations) (adjusted growth +3.0%).

In the 2017 calendar year, Switzerland's biggest online retailer Digitec Galaxus generated sales of CHF 834 million (+18.5%). The electronics specialist digitec remains the stronger brand, although the online store Galaxus is catching up quickly.

In the e-commerce business, Migros further cemented its position as the undisputed market leader. Online sales, including Digitec Galaxus, totalled CHF 1'946 million (+5.1%).

 

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Industry & Wholesaling

Sales in the strategic business unit Industry & Wholesaling grew by CHF 132 million (+2.1%) to CHF 6'520 million.

Industry & Wholesaling

Sales in the strategic business unit Industry & Wholesaling grew by CHF 132 million (+2.1%) to CHF 6'520 million.

M-Industry posts solid growth thanks to international business.

The international business achieved growth of CHF 112 million (+14.1%) to CHF 901 million. In the Swiss market, M-Industry optimised its portfolio and sold the Cash+Carry Angehrn (CCA) business. On the other hand, acquisitions (Tipesca SA) and the obtaining of the majority shareholding in Hug Bäckerei AG and Schwyzer Milchhuus AG strengthened the market position and generated total sales of CHF 5'619 million (+0.4%). At CHF 4'526 million, business with Migros Group remained at the previous year's level. Sales in the wholesale business were increased by 2.2% to CHF 1'093 million.

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Travel

The strategic business unit Travel recorded a year-on-year increase in net sales of 1.2% on a comparable basis.

Travel

The strategic business unit Travel recorded a year-on-year increase in net sales of 1.2% on a comparable basis. However, net sales declined by 5.6% to CHF 1'212 million (total income CHF 1'221 million / -5.5%) as a result of the sale of Hotelplan Italia and the noticeably weaker British pound.

Geopolitical events impact negatively on travel business.

Overall, the Travel business unit achieved posted sales of CHF 1'379 million, a fall of 3.9%. Whereas sales at Hotelplan Suisse remained constant, Hotelplan UK posted an increase of 3.2% in local currency terms, and Holiday Home Division recorded growth of 3%. In its first full year, bedfinder recorded very impressive growth, and the potential for further growth is huge.

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Income trend in the Financial Services sector

Total income in the Financial Services sector amounted to CHF 783 million in the reporting year, with interest revenue of CHF 628 million or 80.2 % constituting the main share of total income. The fall in income of CHF 44 million in total can therefore also be attributed primarily to lower interest revenue.

Financial Report Migros Group (pdf, 772.98 KB)