Home » Migros President: “We have interested parties for all formats” – News

Migros President: “We have interested parties for all formats” – News

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Migros President: “We have interested parties for all formats” – News

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Migros wants to sell several subsidiaries and cut 1,500 jobs: For the first time since the restructuring plans were announced, Migros President Ursula Nold comments on the current situation and announces a social plan.

At Migros, no stone is left unturned: This is the impression conveyed by the renovation plans that the retailer announced a good three months ago. Several businesses such as Hotelplan, Mibelle, SportX and Melectronics are to be sold, and other parts of the company are under scrutiny. The Migros Group itself, which has almost 100,000 employees, will lose up to 1,500 full-time positions – the largest reduction in the cooperative’s almost 100-year history.

To date, it is unclear exactly where jobs will be cut and which employees will be affected. There is great uncertainty among employees, say those affected. In “Eco Talk”, Ursula Nold, President of the Migros Cooperative Association, comments on the current situation.

We will do significantly more than is required by law.

Nold said she was aware that Migros, as one of the country’s largest employers, had a special responsibility. Affected employees would be supported in their job search within or outside the Migros Group. And: “Whenever possible, we try to avoid layoffs.” There are currently 1,300 open positions and the fluctuation is over ten percent. There will also be a social plan: “We will do significantly more than is required by law.”

Legend: At the helm of Migros for five years: Ursula Nold, President of the Migros Cooperative Association. Keystone / Michael Buholzer

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Galaxus Germany under scrutiny

And how are the discussions with possible buyers for Hotelplan, Mibelle and Co. progressing? “We have interested parties for all formats,” says Nold. Migros is now taking the time necessary to plan sales carefully and prudently. However, when asked whether the companies will be sold as a whole or split up, Nold does not give a concrete answer and only says this: “That is the subject of the current negotiations.”

Lowest profit in almost 40 years

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Migros’ profits have been declining for years. In 2014, the retailer earned 826 million francs. Since then it has been steadily decreasing – with the exception of the pandemic years 2020 to 2022. In 2023 the profit was again at 175 million francs, the lowest it has been in almost 40 years.

One reason: the growing competition, for example from the discounters Aldi and Lidl. The market research institute GfK estimates that Aldi and Lidl together have more than doubled their market share in the food sector from 2010 to 2022 and now stands at 14 percent. Coop lost 3 percentage points in the same time and now has a market share of 32 percent. Migros had to give up 6 percentage points and is now at 34 percent.

The German business of Migros subsidiary Digitec Galaxus is also under scrutiny. The online retailer’s sales in Germany are growing and were 286 million euros last year. But that is still little compared to the turnover in Switzerland of more than 2 billion euros. And: The online competition in Germany is fierce with Amazon, Otto and Mediamarkt.

However: Digitec Galaxus is also exposed to this competition in Switzerland, says Nold. And in this country, the platform is a success story: “Digitec Galaxus was able to increase sales for 22 years and was one of the success drivers in terms of sales last year too.”

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