Migros is looking for buyers for the travel subsidiary Hotelplan, the cosmetics and hygiene subsidiary Mibelle as well as for Melectronics and SportX. This focus will lead to a reduction of up to 1,500 full-time positions at the Migros Group, according to a statement. The goal is to avoid layoffs as much as possible. It was emphasized that there are currently around 1,400 open positions in the Migros Group alone.
The reasons for the sales plans are different. Hotelplan and Mibelle no longer fit the group strategy. And they would have better development opportunities outside the Migros universe, according to the communiqué.
In the case of Melectronics and SportX, the sale has economic reasons: these specialist stores are coming under increasing pressure due to growing online trading. Now “more suitable owners outside the Migros Group” should try their luck with the chains for electronics and sporting goods.
What will happen to the other specialist stores – Bike World, Do it + Garden, Micasa and Obi – is still unclear. These formats would be subject to a thorough review, it said.
High value adjustments
Migros also announced that the review of the portfolio revealed a need for value adjustments of around 500 million francs. This particularly affects logistics properties, IT projects and various other assets that “have a lower balance sheet value due to changed market conditions”.
The value adjustments will burden the 2023 annual financial statements. Nevertheless, the Migros Group will not slip into the red, it was emphasized.