Outlook 2019
Sustainable, innovative and in dialogue with stakeholders: Migros remains faithful to its successful business principles; it continually expands its online range for customers and combines it with in-store retailing.
The general economic situation in Switzerland and the purchasing power of consumers will improve further, albeit to a lesser extent than in 2018. At the same time, net immigration is expected to remain at the previous year's level.
Outlook for the current year
Migros expects continued stable growth in its strategic business units in 2019. The Swiss franc regained some of its strength in the reporting year, as economic growth in Switzerland developed positively in comparison with the eurozone. A slight decrease in the value of the franc against the euro is expected in the current year. As a result, shopping tourism will tend to remain at the current high level.
Purchases from abroad via the internet will continue to rise. Swiss online retail will also continue its strong growth. With cutting-edge formats and new cross-channel initiatives, Migros will set the pace in the market and extend its leading position even further.
Despite new record highs for the Swiss export industry in the reporting year, the Migros Group's export-oriented companies will continue to face major challenges in 2019. Negative exchange rate trends, the weakening economies of EU countries and political uncertainty all make it difficult for Switzerland as a production location to sell its products abroad. The slight fall in commodities prices does little to ease the situation.
The pressure on sales and profits means that the planned and 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.
The investments planned for the current year will also be maintained, in order to further boost long-term competitiveness and provide a solid basis for further growth.
Medium-term outlook
Following its vision "Migros – a better life every day", Migros will continue to do its utmost to be recognised by its customers, employees and the general public as the leading company for quality of life.
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 will do everything it can to continue to offer its customers the best value for money in the future.
In the spirit of Migros founder Gottlieb Duttweiler, the company takes its social responsibility very seriously, in addition to its economic responsibility. It invests a proportion of its sales revenue in cultural and social projects and thereby enables the wider public to play a part in social issues.
To supplement Migros Culture Percentage, which is funded from the sales revenue of the Cooperative Retailing SBU, the Migros Group has created the Engagement Migros development fund to provide additional resources for projects in the areas of culture, sustainability, economics and sport. The company is thereby extending its social commitment to the entire group.
With the sustainable development programme Generation M, Migros has been committed for several years now to protecting the environment, promoting informed consumption and interacting with society and employees in a socially minded and exemplary way. The range of sustainable products and services is being continually expanded.
Even under difficult economic conditions, the company remains committed to its key strategic goals:
- Market leadership in Swiss retail
- A leading role in the other business fields
- Stronger growth abroad, whether organic or through strategic alliances and targeted acquisitions
- Expansion of digital business models
- Profitable growth
Migros will do everything it can to continue to offer its customers the best value for money in the future.
In its operational business, the Migros Group is firmly committed to innovations in the product range and the expansion of attractive online and cross-channel concepts. The latter in particular is becoming an increasingly important strategic factor.
By investing in the expansion of the infrastructure, the local presence of the Migros businesses and branch networks are further strengthened. Not least, the company is committed to the important issue of long-term job security both in Switzerland and abroad.
