Swiss retail giant Migros has said that it plans to focus on lower prices, a more convenient store network, a broader range of private label products, and improving the efficiency of its workforce, as part of a company repositioning.
This strategic shift will enable the retailer to compete more directly with discounters Aldi and Lidl.
In an interview for Swiss newspaper SonntagsZeitung, CEO Mario Irminger explained that the expansion of the group's private-label range represents a "clear break" with the strategy implemented so far.
While popular name brands will remain, Migros will strategically eliminate less popular brands in order to to optimise shelf space and potentially reduce costs. The identity of specific brands that are set to be removed hasn't been announced yet.
Pricing Policy
In terms of its pricing strategy, Migros is aiming to get closer to the discounters without becoming one itself, according to Irminger.
He ruled out a merger with discount chain Denner, adding that Denner is needed "to allow us to defend ourselves from the two German discounters".
Consumer Habits
Irminger also predicted a shift in Swiss consumer habits, with fewer large weekend shopping trips taking place, replaced by more sporadic shopping habits.
To cater to this, Migros plans to invest in smaller stores catering to frequent, smaller purchases. He also acknowledges a potential decline in average purchasing power and the need to cater to budget-conscious consumers.
While Migros announced plans to cut up to 1,500 jobs earlier this year, Irminger assures that the actual number is expected to be closer to 800. Additionally, the company has already implemented efficiency measures by converting permanent positions to temporary roles and leaving vacancies unfilled, he added.
