Migros Annual Report 2018

2018 in Brief

The Migros Group generated sales of CHF 28.5 billion in 2018, representing an increase of 1.4%. Consolidated retail sales also increased by 1.9% to CHF 23.7 billion in a challenging economic environment.

The Chairman's and CEO's Review

Dear ladies and gentlemen,

The challenges of digital transformation are changing markets, companies and consumer behaviour at great speed. The increasing shift from in-store to digital retailing, new technologies and competitors, and persistent shopping tourism call for innovative solutions that offer the customer an inspiring and convenient shopping experience.

Along with a growing range of sustainable products and a further expansion of the health sector, Migros attaches great importance to the careful handling of customer data. The huge confidence that the Swiss population has in Migros is reflected in particular in the higher sales of the Migros Group, which rose by CHF 382 million (+1.4%) to CHF 28.5 billion in 2018.

In the e-commerce business, Migros further cemented its position as the undisputed market leader in Switzerland. Online sales, including Digitec Galaxus, amounted to CHF 2.1 billion (+6.9%).

Solid performance

The Migros Group's earnings before interest and taxes (EBIT) were CHF 651 million in the reporting year, 7.8% above the previous year (2017: CHF 603 million).

With a volume of CHF 1'516 million (2017: CHF 1'476 million), investments remained at a high level. Migros was once again an important economic partner and customer in 2018.

Consolidated retail sales in Switzerland and abroad increased to CHF 23.7 billion (previous year: CHF 23.3 billion), corresponding to growth of 1.9%.

The consolidated sales of Cooperative Retailing rose by 2.5% to CHF 16.9 billion. The Migros supermarkets and hypermarkets generated sales of CHF 11.8 billion (+1.5%) in Switzerland. Despite a challenging market environment, domestic sales in the ten Migros Cooperatives were up by 2.1% on the previous year. This was driven by an increase in footfall to 350 million till receipts (+1.5%).

Regional and sustainable products continued on a growth course, with more than CHF 994 million (+3.5%) of products bearing the label "Aus der Region. Für die Region." (From the region. For the region.) sold. Sales of products with ecological or social added value amounted to CHF 3.1 billion (+5.9%). More than half of Migros' sales of products with sustainability labels were generated by products from "TerraSuisse" and the organic range. At CHF 4.2 billion in total, sales of products carrying sustainability and regional labels and the health label "aha!" (CHF 93 million) were up by 5.3% 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 in 2018. The comprehensive medical and therapeutic range of Medbase/santémed saw total sales increase by 7.9% to CHF 150 million. This also includes the outpatient operating centre in Burgdorf, which was integrated in the reporting year and with which Medbase expanded its portfolio with a new strategic business segment.

With the expansion of its fitness formats, Migros further consolidated its leading position in the fitness market. With the opening of nine new fitness and wellness locations, it had 130 fitness facilities in Switzerland in 2018.

Growth of M-Industry abroad

M-Industry strengthened its market position abroad. Consolidated sales amounted to CHF 5.8 billion (previous year: CHF 5.9 billion). Adjusted for the sale of CCA Angehrn, sales increased by CHF 155 million (+2.7%). The international business grew by an encouraging 10.9%.

Hotelplan Group

The travel market in Switzerland and abroad was influenced by external factors such as airline bankruptcies, the hot summer and the uncertainty caused by Brexit. Despite the challenging travel market, the Hotelplan Group recorded a 2.4% increase in the number of passengers. In the 2017/2018 financial year, the travel company grew by 3.9%, posting sales of almost CHF 1.3 billion.

Migros Bank

Migros Bank increased its mortgages by 4.3% in 2018. The performance of the investment business was also encouraging, despite the challenging stock market environment. Profit across all divisions was up 1.8% to CHF 204 million.

Social commitment

In 2018, Migros Culture Percentage invested CHF 120 million in culture, society, education, leisure and the economy, including 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. In total, 60 projects were supported in the reporting year and CHF 15.6 million was made available (CHF 16.5 million spent).

Social responsibility as a basic principle

At the end of 2018, the Migros Group employed 106'622 staff (+1.1%), 89'671 of whom were based in Switzerland, equating to an increase of 155 positions (2017: 89'516). Migros therefore continues to be the largest private employer in Switzerland. Its goal is to show particular responsibility towards its staff by providing above-average employee benefits and a working environment that values every employee.

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 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 in the form of lower prices. Even under difficult economic conditions, Migros remains committed to its core strategic goals and will do everything it can to continue to offer its customers the best value for money in the future.

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. The range of sustainable products and services is therefore being continually expanded.

The persistent pressure on sales and profits means that the introduced measures to safeguard efficiency and income will be continued for all companies within the Migros Group, and efforts in the area of innovation will be stepped up. This will enable Migros to boost its competitiveness in the long term and to achieve a solid basis for further growth.

At the same time, Migros promises to build on its social and environmental commitment and meet its social responsibilities, as well as continuing to strengthen its business performance.

Andrea Broggini
Chair of the Board of Directors
Fabrice Zumbrunnen
Chief Executive Officer

Sales in 2018 CHF 28.5 billion

All key figures for 2018


Key Figures 2018

CHF million
except where indicated
2014 2015 2016 2017 2018 Change compared with previous year
Income 27'375 27'406 27'738 28'071 28'453 1.4%
of which income before financial services business 26'502 26'546 26'921 27'292 27'677 1.4%
of which Migros retail sales 23'052 22'996 23'269 23'296 23'729 1.9%
of which (income) of the Cooperatives 15'910 15'613 15'634 15'557 15'921 2.3%
Total Migros distribution sites 648 659 685 701 727 3.7%
Total Migros sales area 1'362'083 1'377'633 1'397'454 1'402'169 1'476'827 5.3%
EBITDA (earnings before interest, taxes, depreciation and amortisation) 2'392 2'314 2'281 2'103 2'118 0.7%
as % of income 8.7 8.4 8.2 7.5 7.4
of which EBITDA of the retail and industry sector 2'076 2'000 1'981 1'795 1'796 0.1%
EBIT (earnings before interest and taxes) 1'126 982 911 603 651 7.8%
as % of income 4.1 3.6 3.3 2.1 2.3
Profit 826 791 663 503 475 -5.5%
as % of income 3.0 2.9 2.4 1.8 1.7
Cash flow from operating activity 2'362 2'696 2'503 1'170 1'361 16.3%
as % of income 8.6 9.8 9.0 4.2 4.8
of which cash flow from the retail and industry sector 1'703 2'047 1'658 1'619 1'641 1.4%
Investments 1'641 1'356 1'663 1'476 1'516 2.7%
Equity 15'970 16'802 17'455 17'913 18'417 2.8%
as % of balance sheet total 26.4 27.0 27.5 27.7 27.7
of which equity of the retail and industry sector 13'548 14'181 14'646 14'931 15'282 2.4%
as % of balance sheet total 65.4 66.5 67.5 67.3 67.1
Balance sheet total 60'585 62'138 63'537 64'581 66'601 3.1%
of which balance sheet total of the retail and industry sector 20'709 21'323 21'703 22'176 22'789 2.8%
Migros Cooperative
Number of Migros cooperative members 2'155'331 2'166'145 2'182'171 2'187'818 2'215'194 1.3%
Workforce (people annual average) 97'456 100'373 102'851 105'456 106'622 1.1%
Full-time positions 71'056 72'609 74'305 75'302 75'542 0.3%
Trainees 3'650 3'700 3'775 3'860 3'833 -0.7%
Society & culture
Migros Culture Percentage expenses 122 120 120 122 120 -1.6%
Expenses Engagement Migros development fund (Migros Group) 6 9 10 15 16 6.7%
Total sales of sustainable, health and regional label Cooperative Retailing 3'401 3'649 3'882 4'021 4'235 5.3%
Greenhouse gas emissions, absolute (in 1000 tonnes CO2-eq) 306.9 303.1 300.4 288.9 280.8 -2.8%
Energy consumption, Migros group (in GWh) 1'731 1'747 1'757 1'739 1'697 -2.4%
Installed solar power plants owned by Migros (in kWp) 13'795 21'402 27'055 27'832 29'742 6.9%
Migros Group, rail transport kilometrage
(in km million)
11.6 11.5 12.5 13.3 13.8 3.8%
Recycling rate (in %) 76.8 78.0 77.7 77.8 74.1 -4.8%

Highlights 2018

Migros' key achievements in 2018


Fabrice Zumbrunnen appointed new CEO

Fabrice Zumbrunnen took over from Herbert Bolliger as the new CEO of the Federation of Migros Cooperatives with effect from 1 January 2018. Zumbrunnen has been a member of the FMC Executive Board since 2012. He was succeeded as Head of the HR, Communication, Culture, Leisure Department by Sarah Kreienbühl at the beginning of the year. Kreienbühl was previously on the Management Board of Sonova AG.


Migros launches Amigos platform

Migros has launched the social shopping platform Amigos, initially as a pilot project. It is based on the idea that Migros customers go shopping for one another; orders are placed via the app. With this platform, which is undergoing tests in Zurich and Berne, Migros is complementing its online shopping options with a new service that focuses on the social aspect.


N-CLA extended until 2022

More than 50'000 employees in 40 Migros Group companies are covered by the Migros National Collective Labour Agreement. N-CLA 2019–2022, which has replaced the agreement that expired on 31 December 2018, ensures that the comprehensive benefits and achievements are preserved and the Migros Group can continue providing exemplary working conditions.


Migros is the world's most responsible retailer

The independent ratings agency ISS-oekom assessed the social and ecological commitment of 151 retailers worldwide. The Migros Group achieved the best result, making it the world's most sustainable retailer in 2018.


Fast Forward bundle of measures

As part of the "Fast Forward" project, the Federation of Migros Cooperatives has identified more than 30 measures to make internal processes leaner and more efficient. Simplifying the organisation and exploiting synergies within the FMC will help to make Migros fit for the future and free up resources for relevant projects.

Zur Rose and Medbase join forces

The Migros-owned Medbase Group serves 450'000 patients in Switzerland with some 1.8 million consultations per year. As part of a strategic partnership, mail-order pharmacy Zur Rose is now the exclusive supplier of medical products to all Medbase centres, thus enabling medical and pharmaceutical competencies to be optimally combined.


Migros launches M-Check

To make product labelling clearer for its customers, Migros has launched M-Check for sustainable products. The products will now feature standardised labelling, with details relating to cultivation methods, supply chain and packaging shown directly on the product. With this aid, Migros is the first retailer in Switzerland to offer guidance through the complex label landscape.

Mibelle Group acquires Gowoonsesang

The M-Industry company Mibelle Group has acquired Seoul-based Gowoonsesang Cosmetics Co., Ltd. With its "Dr. G." brand, Gowoonsesang specialises in dermocosmetics and fits perfectly into the international export strategy of the Mibelle Group and the health strategy of the Migros Group.


Launch of the musical "Supermarkt Ladies"

Migros is launching the musical "Supermarkt Ladies". The music and dance show will be touring through nine Swiss towns with "Das Zelt" until June 2019. "Supermarkt Ladies" is the world's first interactive musical. The audience plays the staff of a fictitious supermarket and can decide at various points how the play progresses.


Matthias Wunderlin appointed new Head of Marketing

The Board of Directors of the Federation of Migros Cooperatives has appointed Matthias Wunderlin as the new Head of the Marketing Department and a member of the Executive Board. The economist (*1973) will succeed Hansueli Siber on 1 January 2019, who is taking on more strategic roles outside Migros. Wunderlin previously served as Head of Retail Digital Division within the FMC.

Partnership with Digitec Galaxus strengthened

The Migros specialist markets and Near/Non Food are strengthening their partnership with the online retailer Galaxus. More than 14'000 products of the two divisions will now be available online at galaxus.ch. The focus is on Migros' own brands, which make up about 80% of the new range. Digitec Galaxus is Switzerland's leading online retailer.

Medbase Group acquires Topwell AG

The Migros-owned Medbase Group has announced the takeover of Topwell Apotheken and its approximately 40 branches. The Topwell chain, which has more than 600 employees, will be integrated into the Medbase Group this year. Migros is thereby plugging a gap in Swiss integrated care as part of its health strategy. The transaction is subject to review by the Competition Commission.

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 2018, the total sales of the ten regional Migros Cooperatives in Switzerland and abroad amounted to CHF 15.9 billion, representing growth of 2.3% despite the challenging market environment.

Cooperative Retailing

In 2018, the total sales of the ten regional Migros Cooperatives in Switzerland and abroad amounted to CHF 15.921 billion, representing growth of 2.3% despite the challenging market environment.

Financial results Cooperative Retailing

In CHF million 2018 2017 Change in %
Net revenue from goods and services sold
Cooperatives incl. other countries 15'921 15'557 2.3%
Medbase (Medbase Group and santémed health centers) 150 139 7.9%
FMC 5'335 5'189 2.8%
Logistics 377 359 5.0%
Other companies 334 336 -0.7%
Net revenue from goods and services sold 22'118 21'580 2.5%
Elimination intra-sectoral -5'253 -5'130
Sales per segment (net revenue from sales of goods and services sold) 16'865 16'450 2.5%
Other operating income 409 446 -8.5%
Total income 17'273 16'896 2.2%
Earnings before interest and taxes (EBIT) 363 306 18.8%
Segment assets 10'680 10'570
Investments in long-term assets 1'025 945
Employees 71'323 69'573

Distribution figures Cooperative Retailing

Number of sites Sales area (m2)
2018 2017 2018 2017
Distribution sites Switzerland
Migros sites
M 351 345 288'237 280'268
MM 208 209 482'166 479'315
MMM 49 49 382'416 376'440
Total 608 603 1'152'819 1'136'023
MParcs/specialist market centres/Obi 51 39 295'469 240'573
Single-line stores 1 38 36 24'470 22'251
Total 89 75 319'939 262'824
Independent gastronomy businesses 30 23 4'069 3'322
Total sites 727 701 1'476'827 1'402'169
Distribution lines Switzerland
M, MM and MMM 608 603 932'661 922'401
Other supermarkets 2 9 9 12'422 11'940
Total supermarkets 617 612 945'083 934'341
Specialist markets 3
Do it + Garden 45 43 106'078 103'038
Micasa 34 32 75'203 74'529
Interio 4 11 - 51'479 -
SportXX 62 60 75'209 73'134
Melectronics 106 105 42'484 41'543
Obi DIY superstore/garden 11 10 86'170 81'304
Total specialist markets 269 250 436'623 373'548
Migros Gastronomy
M-Restaurants 161 162 79'914 79'580
Takeaways and other gastronomic formats 5 163 151 15'207 14'700
Total Gastronomy 324 313 95'121 94'280
Distribution sites other countries
France (Migros France)
MMM 2 2 10'883 10'883
MM 1 1 1'638 1'638
Tegut 273 273 291'222 288'383
Total other countries 276 276 303'743 300'904
Wholesaling cooperatives and other
Migros Partners 49 47 - -
VOI 53 44 - -
Leisure, health and foundations
Migros Fitness Switzerland 6 122 121 - -
Migros Fitness outside Switzerland 7 174 181 - -
Medbase and santémed health centers 51 47 - -
Aquaparcs 8 3 3 - -
Sportparcs 3 3 - -
Golfparcs 8 8 - -
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 New definition of criteria for various specialist markets; thus, adjustment of the corresponding figures for the previous year

4 Interio included in the 'Cooperative Retailing' segment from 2018

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

6 incl. fitness park in Milandia sport and adventure park; incl. subsidiaries/formats (Activ Fitness, FlowerPower, ONE Training Center, MFIT, M-Fitnesscenter, Only Fitness, Silhouette/PURE)

7 Migros Freizeit Deutschland GmbH (ELEMENTS studios in Germany, INJOY franchise facilities in Germany, Austria and Belgium)

8 Säntispark, Bernaqua, Vitam (FR)

As in the previous year, Cooperative Retailing was again dominated by a competitive market environment in 2018, with average inflation of 1.3% in the supermarkets and hypermarkets, and average deflation of -1.9% in the specialist markets. The shift from in-store to online retailing continued.

Increase in footfall

The consolidated sales of Cooperative Retailing rose by 2.5% to CHF 16.865 billion. In 2018, the supermarkets and hypermarkets generated sales of CHF 11.765 billion in Switzerland. As a result, sales of the ten Migros Cooperatives were up by 1.5% on the previous year, despite the challenging environment. This was driven by an increase in footfall to 350 million till receipts (+1.5%).

The specialist markets Micasa, SportXX, melectronics, Do it + Garden and OBI generated sales of CHF 1.774 billion (+9.6%). This figure included Interio for the first time. Excluding Interio, year-on-year growth amounted to 1.0%. The online shops of the specialist markets again developed well, with a 25.2% increase in sales.

Sales of sustainable products up considerably

Sustainable and regional products were very popular in 2018. Customers bought over 3% more products bearing the label "Aus der Region. Für die Region" (From the region. For the region), with sales amounting to CHF 994 million. At CHF 3.148 billion, total sales of products with ecological or social added value were up 5.9% on the previous year.

Collection service expanded

PickMup, Migros' collection and returns network, was further expanded in 2018. A total of some 160'000 packages were collected in the reporting year – twice as many as in the previous year.

At CHF 673 million, sales of Migros Catering were 0.4% lower year on year. Under the brand name "Migros Daily", a new format with fresh products was launched in the fast food segment.

The Migros sales network grew by 26 locations to a total of 727 in the reporting year. The sales area for supermarkets, hypermarkets, specialist markets and catering services amounted to 1'476'827 m2 (+5.3%) at year end.

Commitment to health

In the health segment, the Migros-owned Medbase Group further expanded its medical and therapeutic range in 2018. Sales increased by 7.9% to CHF 150 million.

The sustainable development programme Generation M, launched in 2012, has so far made 67 binding promises to tomorrow's generation; at the end of 2018, 44 of these had been met.


In 2018, the companies focused their activities even more consistently on providing customer-oriented products and services. The consolidated sales of the Commerce department amounted to CHF 7.9 billion.


In 2018, the companies focused their activities even more consistently on providing customer-oriented products and services. This enabled them to strengthen their position in the dynamic retail market. The consolidated sales of the Commerce department amounted to CHF 7.869 billion. Taking into account the sale of the majority shareholdings in OWiba, Probikeshop and Sharoo, and the integration of Interio into Cooperative Retailing, this corresponds to a 4.9% increase in sales.

Financial results Commerce

CHF million 2018 2017 Change in %
Net revenue from goods and services sold
Denner AG 3'181 3'050 4.3%
Migrol AG 1'530 1'410 8.5%
Magazine zum Globus AG 808 857 -5.7%
Digitec Galaxus AG 953 834 14.2%
Depot (Gries Deco Company GmbH) 554 540 2.5%
migrolino AG 516 480 7.3%
Le Shop S.A. 185 181 1.9%
Ex Libris AG 99 109 -9.0%
Other companies 58 379 -84.8%
Net revenue from goods and services sold 7'882 7'840 0.5%
Elimination intra-sectoral -13 -27
Sales per segment (net revenue from sales of goods and services sold) 7'869 7'813 0.7%
Other operating income 101 126 -20.1%
Total income 7'970 7'938 0.4%
Earnings before interest and taxes (EBIT) -152 -83 -84.3%
Segment assets 1'995 2'072
Investments in long-term assets 181 223
Employees 16'826 17'369

Distribution network Commerce figures

Number of sites Sales area
2018 2017 2018 2017
Denner 817 811
Denner branches 537 522 214'789 210'552
Denner satellites (incl. Denner Express) 280 289
Globus (Magazine zum Globus AG) 56 81 118'926 131'949
Globus department stores 1 15 15 83'188 81'842
Globus special formats 1 2 41 66 35'738 50'107
Interio AG 3 - 11 - 44'073
Depot Switzerland 38 39 17'800 18'000
Depot (Germany and Austria) 644 601 262'807 255'031
Ex Libris AG 15 57 1'562 5'624
Total petrol stations 307 307 - -
Migrol Auto Service/Migrol Service 149 144 - -
Petrol stations (automated) 158 163 - -
Convenience stores operated by Migrol (migrolino und Migrol-Shops) (149) (144) - -
Total convenience stores 4 367 357 - -
migrolino 318 311 - -
Migrol shops 49 46 - -

1 incl. outlets

2 Consolidation of the former Herren Globus and Schild branches in 2018

3 Interio included in the 'Cooperative Retailing' segment from 2018

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

Due to their customer-focused orientation, the companies Denner, migrolino, Migrol, Digitec Galaxus, Le Shop, Depot and m-way remain on a growth trajectory. In 2018, they strengthened their market position further in the highly competitive retail sector.

Globus and Ex Libris are in the midst of an intensive transformation phase that is on one hand influencing their sales development, and on the other leading to a significant increase in online business.

In their increasingly interlinked sales channels (in-store, online, mobile), the retail companies are focusing consistently on meeting customers' diverse shopping and consumption needs.

Enhancement of market position

Denner was able to underline its position as Switzerland's leading discounter in a challenging market environment by offering its customers excellent value money. With growth of 4.3%, Denner increased its sales for the ninth time in succession. In 2018, Denner carried out modernisation work on a total of 204 branches and partner stores, and expanded its network of sites by six to 817. Due to consistent expansion of its services, more and more customers are shopping at Denner. This led to an increase in footfall of 4.4% for the own branches and 3.6% across the entire network.

In 2018, migrolino significantly expanded its range of fresh and convenience products at its 318 locations (previous year: 311), thereby increasing customer demand. With a 7.3% rise in sales to CHF 516 million, the shops continued their growth trend.

Migrol was able to increase its share of the declining fuel market and expand its business with higher sales volumes. The positive price development in the petrol station and petroleum market also contributed to the encouraging 8.5% increase in sales.

Digitec Galaxus increased its platform sales by 15% to CHF 992 million, further extending its position as the market leader in Switzerland. Net sales came in at CHF 953 million, compared with CHF 834 million in the previous year. The two portals digitec.ch and galaxus.ch recorded strong growth in supply and demand. Through the integration of further retailers, the product range has almost trebled to 2.6 million products.

Sales at Le Shop increased by 1.9% to CHF 185 million. Adjusted for the one-off effects from the closure of the Drive pilot locations in 2017, growth in the home delivery business amounted to 3.8%. This confirmed Le Shop's position as Switzerland's leading online supermarket.

Market position defended

As announced in January 2018, Ex Libris positioned itself to meet rising online demand and reduced the branch network by three quarters to 14 branches. As expected, this led to lower in-store sales. In contrast, the realignment generated strong online growth of 16.3%. This resulted in total sales of CHF 99 million (-9.0%). Excluding the branches, this corresponds to a 9.8% increase in sales.

m-way is operating in a fiercely competitive market that is being entered by more and more providers. Despite this, it was able to consolidate its leading position in the Swiss e-bike market and keep sales at a steady level.

Implementation of efficiency measures

For Globus, 2018 was a year marked by transformation and the orientation towards a digital, in-store and integrated shopping experience for the customer. Expansion of the mobile online shop, the acquisition of Navyboot, the transformation of Schild and Herren Globus into specialist fashion retailers, and the reduction of the branch network all had a significant impact on the structure of Globus. In this year of change, Globus achieved sales of CHF 808 million, representing a decrease of 5.7% in absolute terms. However, like-for-like sales were up 0.4% due to the rising popularity of the online shop.

Depot's network of outlets grew to 488 (previous year: 479) and 196 locations at wholesale partners. (previous year: 161). The company generated consolidated sales of CHF 554 million, representing an increase of 2.5%.

Industry & Wholesaling

In 2018, the consolidated sales of M-Industry came in at CHF 5.8 billion. Adjusted for the sale of CCA Angehrn, growth amounted to 2.7%. The international business grew by 10.9%; business from the Swiss market increased by 1.5%.

Industry & Wholesaling

In 2018, the consolidated sales of M-Industry came in at CHF 5.8 billion. Adjusted for the sale of CCA Angehrn, growth amounted to 2.7%. The international business grew by 10.9%; business from the Swiss market increased by 1.5%.

Financial results Industry & Wholesaling

CHF million 2018 2017 Change in %
Net revenue from goods and services sold 5'829 5'905 -1.3%
Other operating income 87 89 -2.2%
Total income 5'916 5'994 -1.3%
Earnings before interest and taxes (EBIT) 132 56 137.6%
Segment assets 2'366 2'289
Investments in long-term assets 207 216
Employees 14'070 14'192

In 2018, the consolidated sales of M-Industry amounted to CHF 5.829 billion (previous year: CHF 5.905 billion). This decrease is due to the loss of income following the sale of CCA Angehrn. Excluding this disposal, growth amounted to CHF 155 million (+2.7%).

Market position in Asia strengthened

The international business achieved strong growth of CHF 79 million (+10.9%) to CHF 807 million. In the export business, cosmetics, coffee capsules, chocolate and cheese were again the main growth drivers. The market position in Asia was strengthened further with the takeover of the South Korean company Gowoonsesang Cosmetics Co. Ltd.

Solid domestic growth

In the Swiss market (retailing and bulk consumer business), M-Industry increased its sales by 1.5% to CHF 5.022 billion (adjusted for the sale of CCA Angehrn). M-Industry's business with the Migros Group grew by 0.8% to CHF 4.117 billion. Business with Denner developed disproportionately well.

In the bulk consumer business, M-Industry continued to focus consistently on the delivery sector. In Landquart, Saviva has opened its first regional sales and logistics centre with integrated gastro-butcher's shop for the food services industry. The strengths of the traditional brands Scana, Mérat and Lüchinger + Schmid are now bundled under one roof. Adjusted for the sale of CCA, organic growth of 5.0% was achieved. This translates to sales of CHF 0.906 billion.

Investments in the Swiss business areas

M-Industry invested CHF 207 million in Switzerland as a centre of industry in 2018. As in previous years, the focus was on capacity expansion, process automation and digitalisation, as well as investments to reduce CO2 emissions and water consumption. With the construction of a new building for parent stock for hatching egg production in Sierre and the new broiler chicken hatchery in Avenches, Micarna is setting new animal welfare standards in poultry farming.

Stable development of jobs

M-Industry employed an average of 14'048 employees in 2018. Adjusted for the sale of CCA and the acquisition in South Korea, it had 78 more employees than in the previous year. 1'258 employees work abroad. As a leading trainer, M-Industry trained a total of 554 apprentices in more than 30 different occupations.

Financial Services

Migros Bank increased its mortgages by 4.3% in 2018. The performance of the investment business was also encouraging, despite the challenging stock market environment. Profit across all divisions was up 1.8% to CHF 204 million.

Financial Services

Migros Bank increased its mortgages by 4.3% in 2018. The performance of the investment business was also encouraging, despite the challenging stock market environment. Profit across all divisions was up 1.8% to CHF 204 million.

Financial results Financial Services

CHF million 2018 2017 Change in %
Net revenue from goods and services sold 6 3 131.5%
Income from financial services business 777 779 -0.3%
Other operating income 2 2 28.9%
Total income 785 783 0.2%
Earnings before interest and taxes (EBIT) 291 280 4.1%
Segment assets 44'638 43'277
Investments in long-term assets 17 17
Employees 1'519 1'479

Migros Bank continued to grow in 2018. The number of asset management mandates was up considerably in the reporting year. After a 17.9% rise in 2017, the volume increased by a further 34.0% in 2018. The sustainability funds enjoyed strong demand again, with a 9.4% increase in volume to CHF 327 million.

Due to the market conditions, the total of all securities held by customers in Migros Bank custodian accounts fell by 8.8% to CHF 11.2 billion, but the number of depositing customers rose by 1.9%. In contrast to the securities volumes, liabilities arising from customer deposits increased by 1.8% to CHF 33.9 billion. There was considerable growth in the number of private accounts (+6.3%) and pillar 3a retirement accounts (+2.2%).

Mortgage business develops well

Customer loans grew even more strongly than customer deposits, with an increase of 4.1% to CHF 39.0 billion. Receivables from private lending made up CHF 1.0 billion of this amount (+0.8%), while mortgages constituted CHF 37.0 billion (+4.3%). In a highly competitive environment, Migros Bank firmly maintained its cautious lending policy in 2018. At year end, 97.7% of the portfolio of mortgages on residential properties consisted of first priority mortgages with a loan-to-value rate of up to 67%. In parallel to the mortgage portfolio, Migros Bank's net interest income increased by 3.9% to CHF 469 million.

Increase in operating income and profit

Commission income also developed encouragingly. As a result of expanding the investment customer base, it rose by 3.5% to CHF 102 million. At CHF 34 million, trading income was slightly higher than in the previous year (+0.2%). In contrast, other ordinary income increased significantly to CHF 15 million. This figure contains one-off investment income from the sale of the acquiring and terminal business of the payment services provider Aduno Holding AG, in which Migros Bank holds a 7% stake. The operating income of Migros Bank rose by 4.7% overall to CHF 620 million.

Operating expenses increased by 5.5% to CHF 296 million. Among other reasons, this was due to expansion of the core activities and investment in future-oriented IT solutions. After reaching an encouragingly low level in 2017 (46.5%), the cost/income ratio was 47.4%.

After taking into account depreciation, provisions and losses, operating income and profit amounted to CHF 288 million (+2.2%). After accounting for extraordinary items, the creation of reserves for general banking risks and taxes, a profit of CHF 204 million was generated (+1.8%).

Comprehensive range of services

In 2018, Migros Bank acquired a majority stake in the Zurich-based company CSL Immobilien AG, a leading full-service provider in the real estate sector. The two partners provide a range of services that covers the entire real estate life cycle, including valuation, financing, development, general contracting, marketing and management. The range is completed with research and analysis of the Swiss real estate market.


The Hotelplan Group grew by 3.9% in 2017/2018, posting sales of CHF 1.3 billion despite the challenging travel market.


The Hotelplan Group grew by 3.9% in 2017/2018, posting sales of CHF 1'259 million despite the challenging travel market.

Financial figures Travel

CHF million 2018 2017 Change in %
Net revenue from goods and services sold 1'259 1'212 3.9%
Other operating income 7 9 -18.5%
Total income 1'267 1'221 3.8%
Earnings before interest and taxes (EBIT) -3 5 -166.1%
Segment assets 87 13
Investments in long-term assets 5 7
Employees 2'749 2'709

The travel market in 2018 was influenced by external factors such as airline bankruptcies, the hot summer and the uncertainty caused by Brexit, all of which impacted business in Switzerland and abroad. The Hotelplan Group rose to the challenge with a 2.4% increase in the number of passengers. This resulted in sales for the past financial year (1 November 2017 to 31 October 2018) increasing by 3.9% to CHF 1'259 million.

Stable development in Switzerland

Despite airline bankruptcies, including SkyWork Airlines and Cobalt Air, the Swiss market leader Hotelplan Suisse was able to hold its own in a challenging market environment and keep sales at the same level as in the previous year. The sales achieved together with the business travel specialist bta first travel amounted to CHF 558 million.

Finass Reisen AG, which was acquired on 31 October 2018, is an ideal addition to the business travel segment in which bta first travel operates. The two business travel specialists each have different target groups and are managed separately.

Growth in holiday home segment

The Holiday Home Division, comprising the two holiday home agencies Interhome and Inter Chalet, continued its strong growth. At 8%, growth was considerably higher than in the previous year. With sales of CHF 359 million, the Holiday Home Division is the second largest division of the Hotelplan Group. The potential of the two brands has not yet been exhausted; the focus in 2019 will again be on exploiting synergies.

Hotelplan UK defies Brexit uncertainty

Hotelplan UK increased its sales in the local currency by 2.9% to GBP 259 million; in Swiss francs, the figure amounts to CHF 339 million (+6.7%). Hotelplan UK is thus defying the uncertainty surrounding Brexit and the associated weakness of the British pound. However, as the effects of Brexit are still unclear, the outlook is slightly gloomy.

Investments in start-up

The start-up bedfinder has tapped into further source markets, including India and the United Arab Emirates, and expanded its range with white-label products. As a result, invoiced sales were up by 34%. Net sales amounted to CHF 4 million, representing growth of 68%. bedfinder began offering and selling package holidays for the first time in the reporting year.

Shared Services

In 2018, the Logistics & IT Department – Shared Services – continued to ensure that the national and international supply chain functioned flawlessly and was further optimised.

Shared Services

In 2018, the Logistics & IT Department – Shared Services – continued to ensure that the national and international supply chain functioned flawlessly and was further optimised.

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, which are oriented towards overriding objectives and requirements.

Logistics: optimisation & expansion

In the area of logistics, the main focus in 2018 was on improving efficiency along the entire value-added chain. At the Migros Distribution Centre in Suhr (food), further processes were optimised with a focus on reducing costs and ensuring quality.

At the Migros Distribution Centre in Neuendorf (non-food and near-food, textiles and frozen products), work on expanding and automating the site got under way in 2018. The plant is due to go into operation in 2021.

Transport: economical & ecological

Changing customer requirements – longer opening hours, cross-channel shopping and supply – call for transport solutions to be continuously adapted. In 2018, Shared Services successfully evolved 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 again passed through the Mediterranean ports in 2018.
  • Migros also made more use of rail freight again. The number of rail kilometres was up by 3%. Since 2018, deliveries to Migros Eastern Switzerland from the Migros distribution centre in Neuendorf have been made exclusively by rail. Some international shipments from suppliers were also switched to rail.
  • In addition, an innovative software program that analyses and optimises international and national sea, road and rail freight on the basis of geographical data was developed further in 2018.
  • The content and details of the innovation partnership agreed with the Swiss Federal Laboratories for Materials Science and Technology (EMPA) in 2017 were enhanced in the reporting year. The aim is to create a simulation system that can calculate the composition of vehicle fleets and their effects on the environment.
  • Migros continued to support the national generational project Cargo sous Terrain and is represented on the board of directors of Cargo sous Terrain AG and other bodies, including the steering committee of the City Logistics sub-project. This sub-project is being brought forward and will be carried out in the coming years.

IT: digitalisation & transformation

In Migros IT Services, some important milestones were reached in 2018 and foundations laid for the future.

  • For example, the pilot phase with the new POS checkout system Avanta was completed in Migros Lucerne. The future-oriented solution, which supports the requirements of in-store and online business, will be available to all supermarkets/hypermarkets and specialist markets, and to Catering and Cooperative Retailing from 2020.
  • In Cooperative Retailing, the project Rialto was successfully completed in 2018. It creates a standardised e-commerce architecture for Micasa.ch, SportXX.ch and M-Service in particular.
  • In the area of personalised marketing, various customer databases were consolidated into a central data pool in the reporting year. This will provide a technical basis for subsequent projects in this area.
  • The #shift transformation programme of Migros IT Services was also launched in 2018, with the aim of achieving three objectives: aligning IT more closely with customer requirements; developing new core competencies; making the development and operational processes more efficient. The programme will be implemented in several stages by 2022.

Engineering: resource efficiency

Several construction and conversion projects were planned and implemented throughout the Migros Group in 2018. For example, the automated warehouse for Digitec Galaxus went into operation in Wohlen (AG). New picking systems are planned in individual Cooperatives and will go into operation in the coming years. Energy masterplans for M-Industry companies ensure long-term resource efficiency, particularly in the operation of equipment and buildings.

2018 in Brief (pdf, 2.02 MB)