The departure of Migros boss Fabrice Zumbrunnen (52) did not surprise insiders. Joinery cracks at Migros. It looks like the Zumbrunnen executive chair has been sawing since the summer.
It also has to do with just staying on the sidelines, like the orange giant Migros Bank, tour operator Hotelplan or Migrol gas stations. On the other hand, the supermarket business is a failure and sales in its core business are shrinking. Given high inflation, the situation is likely to worsen next year as consumers are more likely to flip the franc twice.
Efficiency program in planning
The problem: In retail, margins are low and fixed costs such as personnel, rent and logistics are high. If sales fall, the balance sheet will quickly slide into the red. According to the “SonntagsZeitung”, the supermarket business is only really good in cooperatives in Eastern Switzerland and Lucerne. Eight other regions are already in or about to be in the red in this area.
Whoever takes the place of Zumbrunnen faces a Herculean task. The structure of ten independent cooperatives has grown historically, but is outdated. All attempts to centralize purchasing or logistics and make them more efficient have failed. Additionally, regions are relatively free to manage the range – creating little synergy. All in all: “NZZ am Sonntag” it says, a productivity program is already planned.
The President must go now.
The big problem: None of the district princes want to give up power. For example, a merger in a few large cooperatives would cost most of them their offices and their money. At this point, Migros President Ursula Nold (53) comes into play. He must enter the ring with the new man to break the power of the district princes. And help get the supermarkets back on track. However, it is not yet clear whether he will be willing to do so because he has a lot to lose in this power struggle. Zumbrunnen had to leave because he could not defend himself against the district princes.