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Green light for the most radical restructuring in Migros history. Migros spokesman Marcel Schlatter said, “We will definitely start operating with Supermarket AG on January 1.”
The council, consisting of ten regional cooperatives, determined the necessary route for the new Migros Supermarket AG at its last meeting of 2023, and as before, the delegate meeting of the Migros Cooperative Union (MGB) gave the green light to the restructuring of the group.
Had to make harsh cuts
The establishment of Supermarket AG, which has been officially registered in the trade register of the Canton of Zurich since December 18, 2023, forces those involved to make faster decisions and work more efficiently. While Migros customers will initially notice little when shopping in-store from January, the restructuring of Supermarket AG will shake the foundations of Migros in 2024.
Far-reaching decisions are made for staff and organization: Supermarkets and specialty stores must be “repositioned”, services and product ranges must be “standardised” and duplication must be “eliminated”. Mario Irminger (58) put the staff in this mood during Blick’s interview with the Migros boss in the fall.
Those affected will not learn which jobs will be lost, which positions must be closed and layoffs must be announced in the first quarter at the earliest. Neo-boss Irminger also knows that it is impossible for the Dutti Group to overload its employees before the holidays.
Migros cannot afford to devote much time to the situation as it has lost “significant market share” to Coop, two German discounters Aldi and Lidl, and the company’s own flagship company Denner.
This will not work without layoffs: between 1,800 and 2,200 jobs are already transferred internally and this could be eliminated with the new organization around Supermarket AG. “We have to assume that there will be layoffs in certain regions this year,” Migros spokesman Schlatter said. However, he emphasizes that there is no “savings target” or set target size. They are also desperately looking for staff in sales.
Migros will announce its 2023 fiscal year sales figures on January 16. “There will be no groundbreaking information beyond the numbers,” says a person from MGB who does not want to be named. “We should know more about the upcoming decisions by early summer at the latest,” says spokesman Schlatter. Nothing more can be learned from it.
Central unit supermarket AG
It’s no secret: At the beginning of the year, 700 people from the marketing department will move from MBG to the central supermarket unit. This should address anything that can be standardized and economies of scale benefited from. Purchasing and assortment planning are also included. But centralization also means that certain positions in marketing and sales are no longer needed.
The same goes for specialist shops: do we still need two construction and DIY chains along with Do it + Garden and Obi Switzerland? Do Migros retailers, with their large sales areas such as SportX and Micasa, still make sense despite customers increasingly buying fashion and furniture online? With the closure of many Melectronics stores and their integration into Migros supermarket spaces, Irminger has already shown where other formats can go. Everything is possible, from narrowing the footprint to selling or closing certain retailers and specific formats. “We’re examining all options,” spokesman Schlatter says, echoing what his boss, Mario Irminger, said in the Blick interview.
Migros Sanayi is also involved
Restructuring and restructuring efforts continue in the areas where Migros operates. Companies such as Micarna, Delica and Mibelle ensure that stores are supplied with classic own brands, which are in no way inferior to manufacturers of branded products in terms of price and quality.
The staff statement, delivered on December 1, 2023, made people sit up and take notice. Matthias Wunderlin (50), former marketing manager of Migros, took over the management of M-Industry. Interesting: Since August he has been responsible for the transformation of the supermarket business into the group-wide Supermarket AG organization. Will Wunderlin, together with Migros’ boss Irminger, clear the billion-dollar business of their sector and gradually bring it under the umbrella of Supermarket AG?
Irminger explained in the interview that it will move in that direction, but probably not before 2028. “If we reorganize the industry now, we will have to get rid of wildly growing activities,” Migros’ boss said earlier. Spokesperson Schlatter adds: “Migros’ own production facilities should increase their profitability in the future by focusing on relevant own brands with a high level of differentiation and attractive prices.” As a result, industrial companies will also boom and clean up.
Major renovation before Migros’ anniversary
In the midst of the group’s restructuring, an important event for Migros will take place in 2025: its 100th anniversary. On August 25, 1925, Migros founder Gottlieb Duttweiler traveled to Zurich with a sales van for the first time – Migros was born.
Migros is organizing a mega birthday party with a big scoop for its employees at the festival area of the Federal Wrestling and Alpine Festival in Mollis GL on 1-2 September 2025. Customers should also be included in the anniversary celebration.
Migros wants to avoid background noise and negative headlines on its anniversary. One more reason to take or at least announce tough decisions and layoffs as early as 2024. The great noise and cleanliness that started in the first step in Supermarket AG is now gaining momentum.
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
