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M more efficient

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Migros is grouping its supermarket business.
Sarah FrattaroliDeputy Head of Economics Department

It’s time for Migros to become “Fit pour le Futur”. The complex and bulky nature of the orange giant is as legendary as Frey chocolate, Blévita crackers or Farmer bars.

For example, five years ago, when Migros Ostschweiz opened its new supermarket in the Neuwiesen shopping center in Winterthur, a lot of head-swapping at the group’s headquarters in Zurich: the Winterthur branch’s confectionery is in the style of a Viennese coffee house. , with a show kitchen in the middle of the shop. This may be welcomed by customers, but it has little to do with other Migros branches. It is an expression of the fact that so far each of the ten regional cooperatives does business according to its own taste – Migusto.

With the increasing competitive pressure from discounters Aldi and Lidl, Migros can no longer afford it. Your core business, supermarkets, has recently contributed an increasingly smaller share of group profits.

Migros creates synergies by bringing the business together at supermarket AG, an independent subsidiary in Zurich: marketing, IT and logistics are now centrally controlled, which reduces costs and shortens decision-making processes.

In order for customers to benefit from the internal transformation, Migros must keep its promise and lower prices. And don’t just increase your own margins with productivity gains.

Source :Blick

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