What do customers gain from this?

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20 years ago Hansueli Loosli (67) dealt the big blow: The cooperative boss dissolved regional cooperatives. Since then, nothing but structural problems in Coop has been heard.

Not so with Migros: ten regional cooperatives have maintained their strong positions in the 21st century. In the Central Federation of Migros Cooperatives (MGB), they fight for the smallest common denominator and like to ignore common decisions – as a result, costs rise and sales fall. The profits of ten co-ops have dropped 23 percent since 2017.

But now Migros is launching a redemption: combining its supermarket business. From 2024, a new supermarket AG will organize 600 stores and centralize purchasing.

Does Migros Loosli trust your number? Is the big reform coming now that will pull the teeth of district managers and turn the orange giant into a lean and efficient shop? Michael Stadler, 46, strategist at ZHAW, rejects this idea. “This is more of a reform.”

Is MGW threatened with power loss?

Because the regional cooperatives will remain – and the new supermarket will take place in the management of AG. “That’s how they maintain their influence,” says Stadler. “In the best case, the company becomes a little more efficient, which does little to benefit consumers.” Today they have good alternatives: Aldi and Lidl print with cheap regional products. “Only with consistent centralisation, Migros can tap into its full potential,” says Stadler. “Practical examples show that messy solutions don’t help much.”

MGB is likely to prevent the loss of power only if new CEO Mario Irminger (57) becomes chairman of supermarket AG. But this is exactly what is clear: “The personnel decision has not been made yet,” says Marcel Schlatter, spokesperson for Migros. “This applies to any position of Mario Irminger in the new team. Staffing decisions will be made by the MGB and district co-ops in the coming weeks.”

Pieces should fly there. If Irminger fails to take effective office, the district princes will eventually become even more powerful. Then all Irminger has to do is expand the healthcare industry. It is as lucrative as its banking business: it provides half of the Migros Group’s profits and already subsidizes the supermarkets of the regional princes.

It is not yet known whether this is in the interests of more than two million Migros members.

Source :Blick