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Migros’ upcoming transformation is a revolution, albeit a small one. Because almost none of the other big retailers in Switzerland have structures as complex as the orange giant.
10 regional managers of Migros cooperatives gave the green light to establish a new supermarket organization. The management of Migros Cooperatives Federation (MGB) has already stated that it is in favor of restructuring.
Organization remains complex
Currently, all regions have their own logistics, IT, finance and marketing departments. Part of the purchase goes through MGB, part of it passes through individual regions. On the one hand, this leads to multiple tracks in the fields. On the other hand, it also means that Migros can balance less market power when negotiating with suppliers.
From the beginning of 2024, some of these tasks will be concentrated in a supermarket subsidiary. Migros structures will remain complex even then. A new boss will come before the new branch of Migros. MGB will need to coordinate with its current CEO, Mario Irminger (58).
Will Irminger’s influence now wane?
Ten regions will be represented on the Board of Directors of the subsidiary. This creates a strong subsidiary within the FMC over which the ten regional princes will likely continue to have great influence.
Irminger’s predecessor, Fabrice Zumbrunnen (53), is said to have bitten his teeth at these regional princes. Last October, he surprisingly announced his resignation at the end of April 2023 and let the rumor mill heat up. As said behind closed doors, regional co-ops are said to have spoken to Zumbrunnen very often.
With the new supermarket subsidiary, there is a risk of recurrence. MGB already has a finance, trade and marketing department. Had these departments now moved from MGB to the subsidiary, Irminger’s direct area of responsibility would have been reduced. The coming months will show where things are really going.
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.
