Finance

Income Trend (Sales Trend)

In 2018, Migros Group generated total sales of CHF 28.5 billion and achieved income growth of CHF 382 million (+1.4%).

In the Retail and Industry sector, income increased by CHF 382 million to CHF 27.7 billion (+1.4%). In the core retailing business, sales in Switzerland and abroad totalled CHF 23.7 billion (CHF +433 million or +1.9%). Retail sales abroad comprise the sales of Migros France, Tegut Group and Gries Deco Group. Compared to the previous year, retail sales abroad were increased by CHF 77 million to CHF 1.8 billion (+4.4%).

In the Financial Services sector, income increased by a total of CHF 2 million to CHF 785 million.

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

Total Retail and Industry sector CHF 27.7 billion

All key figures in detail

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Total income trend

In CHF million 2018 2017 Change from previous year
in %
Net revenue from goods and services sold
Cooperative Retailing 16'865 16'450 2.5%
Commerce 7'869 7'813 0.7%
Industry & Wholesaling 5'829 5'905 -1.3%
Travel 1'259 1'212 3.9%
Others 104 99 4.4%
Other operating income 399 465 -14.0%
Eliminations (within Retail and Industry sector) -4'640 -4'639
Total Retail and Industry sector 27'686 27'305 1.4%

Cooperative Retailing

Consolidated sales of CHF 16'865 million (+2.5%) were generated in 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.

Solid sales trend in Cooperative Retailing

Consolidated sales of CHF 16'865 million (+2.5%) were generated in Cooperative Retailing. At CHF 14'607 million, domestic sales of the ten regional Cooperatives increased by CHF 298 million (+2.1%). Sales of CHF 1'314 million (CHF +67 million, or +5.4%) were generated abroad. Total sales rose by CHF 364 million to CHF 15'921 million (+2.3%). The domestic market share was 15.4%, up from 15.0% a year earlier.

In local currency terms, Migros France suffered a decline in sales of 1.8% year-on-year, to EUR 107 million. Tegut generated sales of EUR 1'035 million (+2.7%).

Migros supermarkets and hypermarkets generated domestic sales of CHF 11'765 million (CHF +173 million, or +1.5%).

Together with the first time inclusion of Interio, the specialist markets Micasa, SportXX, melectronics, Do it + Garden and OBI posted sales of CHF 1'774 million (CHF +155 million, or +9.6%) in 2018. Excluding Interio, this corresponds to year-on-year growth of 1.0%.

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 26 in total to 727 sites at the end of 2018. The sales area for supermarkets/hypermarkets, specialist markets and catering services grew by a total of 74'658 m² (+ 5.3%). The productivity per area in supermarkets and hypermarkets in Switzerland totalled CHF 12'620/m² (+0.2%), while the corresponding figure in specialist markets was CHF 3'690/m² (-3.3%).

At CHF 673 million, sales in catering were down by 0.4% overall on the previous year. Under the brand "Migros Daily", a new format with ultra-fresh products was launched in the fast food segment.

In the health sector, Medbase/santémed further expanded its therapeutic and medical range in the reporting year. Sales amounted to CHF 150 million (+7.9%).

Commerce

The strategic business unit Commerce generated consolidated sales of CHF 7'869 million (+0.7%) in the reporting year.

Commerce

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

The strategic business unit Commerce generated consolidated sales of CHF 7'869 million (+0.7%) in the reporting year.

Slight increase in commercial sales despite individual companies undergoing a period of transformation

As a local discounter, Denner posted sales of CHF 3'181 million (+4.3%) in 2018, thus making it one of the winners in the Swiss food retailing business, with its challenging market environment. At the same time, a sharp increase in customers of 3.6% was recorded. The performance of Denner Partner outlets, which ended the year recording an increase in sales of 2.5%, was also pleasing. At the end of 2018, Denner had 817 stores (previous year: 811).

Migrol recorded sales of CHF 1'530 million (+8.5%) in 2018, facilitated also by the price development in the petrol station and petroleum market.

For Magazine zum Globus, the past year was one marked by transformation. Sales in 2018 amounted to CHF 808 million (–5.7%, adjusted by sales area +0.4%). The performance of the online business was encouraging.

The change in the structure of Ex Libris is also reflected in the 2018 result. The company positioned itself to meet rising online demand and reduced the branch network by three quarters to 14 branches. Online sales rose by 16.3% and reached a new record figure. However, falls in in-store business reduced overall sales by CHF 10 million to CHF 99 million (–9.0%).

The retail chain Depot (Gries Deco Company abroad and in Switzerland) posted sales of EUR 481 million (–0.6%) or CHF 554 million (+2.5%).

migrolino continues to grow and generated sales of CHF 516 million (+7.3%). At the end of 2018, migrolino had a total of 318 shops (+7).

Le Shop posted sales of CHF 185 million (+1.9%) in 2018.

In the 2018 calendar year, Switzerland's biggest online retailer Digitec Galaxus generated sales of CHF 953 million domestically and abroad (+14.2%). Both the electronics retailer Digitec and the online store Galaxus posted double-digit growth during the past financial year. In 2018, Digitec was still the stronger shop in terms of sales, whereas Galaxus displayed a sharper upward growth curve. The product portfolio now encompasses a total of 2.6 million items.

m-way is operating in a fiercely competitive market that is being penetrated 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, at CHF 40 million.

E-commerce continues to perform positively

In the e-commerce business, Migros further cemented its position as the undisputed market leader in Switzerland. Online sales, including Digitec Galaxus, totalled CHF 2'080 million (+6.9%).

Industry & Wholesaling

The strategic business unit Industry & Wholesaling generated consolidated sales of CHF 5'829 million in 2018 (previous year: CHF 5'905 million).

Industry & Wholesaling

The strategic business unit Industry & Wholesaling generated consolidated sales of CHF 5'829 million in 2018 (previous year: CHF 5'905 million).

M-Industry posts growth in international business

The decrease is due to the loss of income following the sale of the Cash + Carry Angehrn (CCA) business division. In the international business, M-Industry increased sales by CHF 79 million (+10.9%) to CHF 807 million. The market position in Asia was strengthened further with the takeover of the South Korean company Gowoonsesang Cosmetics Co. Ltd.

Travel

The strategic business unit Travel continued to grow in the 2017 / 2018 financial year and once again recorded a year-on-year increase in sales.

Travel

The strategic business unit Travel continued to grow in the 2017 / 2018 financial year and once again recorded a year-on-year increase in sales.

Growth in the contested travel sector

Despite the challenging environment in the travel sector, the Hotelplan Group posted net sales of CHF 1'259 million. Yet it was not immune to the challenges facing the travel industry in 2018 – the highly-contested beach holiday sector in Switzerland, airline bankruptcies, a short-lived slump in holiday home bookings during the hot summer and the uncertainty surrounding Brexit in the UK. Nevertheless, the Hotelplan Group rose to the challenges and posted sales growth of 3.9%.

Income trend in the Financial Services sector

Total income in the Financial Services sector amounted to CHF 785 million in the reporting year (+0.2%), with interest revenue of CHF 615 million or 78.3% constituting the main share of total income.

Financial Report Migros Group (pdf, 771.98 KB)