Are prices decreasing at Migros?

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It’s as if Migros is uniting its ten regional cooperatives that have grown for decades – a revolution! Until now, each cooperative has run its own supermarket business. Now the management of Migros Cooperatives Federation (MGB) wants to manage the supermarket business as an individual subsidiary in the future – an independent, centrally controlled company. There has been speculation about this for years.

The new Migros supermarket will have its own board of directors and management. The new unit does not yet have a specific name. However, the cult concept of Migros will not disappear. However, the large-scale restructuring of the core business still raises a number of questions. Blick has the most important answers on restructuring the largest private employer in Switzerland.

It’s actually very simple: If the ten regional Migros cooperatives combine their purchasing activities, they will have a better negotiating position with the suppliers. Your market power increases. This is also reflected in the purchase prices. Accordingly, consumer prices will also decrease. And Migros can better buffer inflation. It was 2.6 percent in April. Migros, which made 13 billion sales with supermarkets in 2022, has not yet promised a price cut.

from the region. for the field. This is Migros’ best-known slogan. That shouldn’t change much. In the future, eggs from Eastern Switzerland will not be sold in French-speaking Switzerland. Contracts with regional suppliers are in effect. In the long run, the range will likely become more holistic. However, there may be tightening in the areas that the cooperatives have opposed so far. Regionalism will continue to be an important part of the range.

Led by new CEO Mario Irminger (57), the retailer is looking to modernize its brand portfolio. And it’s everywhere, whether it’s utensils or sexy lingerie. It’s just: The strategy also carries dangers, as so much of Migros’ DNA could be lost. But the orange giant doesn’t want to use Aproz mineral water or Farmer’s bars. But instead it’s the dental hygiene assortment or the good old folders that are increasingly less in demand.

Migros is radically changing its confusing structure with ten regional cooperatives in its main field of activity. Currently, they all have their own logistics, IT, finance and marketing departments. This should expire on January 21, 2024. This simplifies the internal structures. The aim of the new service company: to increase efficiency. And improve the margin. In retail, cooperatives made sales of 13 billion francs in 2022.

Internally, the restructuring will already be noticeable at the initial stage. Migros can make decisions faster with a single center. But first the new supermarket needs to figure out how it wants to position itself internally. Do you need only one HR department or multiple? When the structures are in place, Migros will see what can be done. It is clear that the advantages outweigh the disadvantages: Migros will be cheaper, faster and more consistent.

For decades, the bosses of regional cooperatives have led a good life. Now the power of the regions is limited. But not completely cropped. Migros writes, “Representatives of regional cooperatives and VQA will be on the board of directors.” Ten regional cooperatives will continue to be responsible for regional market development, operational sales and point-of-sale network.

Irminger has been the new boss of Migros since May. But he is the head of the entire Migros Cooperative, not just the markets. It is not yet clear who will take over the new Super Migros. According to insider information, Matthias Wunderlin, Director of Marketing (47) and Peter Diethelm (58), President of Migros Ostschweiz, rank high.

In May, regional administrations decide on the new organization. Migros writes that if they agree, further implementation steps will be considered. It was supposed to start on January 1st.

Source :Blick