Switzerland's Migros Group has reported growth in its core retail business in full-year 2021, with its convenience, discount and health segments the biggest growth-drivers.
However, the group noted that it suffered losses in its travel & leisure and gastronomy segments due to the pandemic.
Annual Performance
On an adjusted basis, consolidated group sales rose by 2.3%, year on year, to CHF 28.9 billion (€28 billion), while profit amounted to CHF 668 million (€647.7 million).
Adjusted retail sales across all Migros companies amounted to CHF 24.7 billion (€24 billion) – up by 2.3%, year on year.
Adjusted earnings before interest and taxes (EBIT) increased by 11.4%, to CHF 800 million (€775.7 million), compared to the year before.
Chief financial officer Isabelle Zimmermann said, “Migros Group is in a strong financial position to tackle the current challenges in the market, and to make shopping even more attractive for its customers with innovations.”
Retail Trade Highlights
The ten regional Migros cooperatives and their subsidiaries in Switzerland and abroad saw a minor decline in net sales, to CHF 16.4 billion (€15.9 million).
The supermarkets and hypermarkets, including the Migros Online business, generated sales of CHF 12.7 billion (€12.3 billion) – down by 0.4%.
In supermarkets, customers benefitted from price reductions of around CHF 190 million (€184.2 million), or an average of 1.7%.
In the discount category, Denner posted a positive performance, with year-on-year sales growth of 1.2%, to CHF 3.8 billion (€3.7 million).
Elsewhere, the convenience chain Migrolino reported year-on-year sales growth of 4.3%, to CHF 747 million (€724.3 million).
The retailer added around 500 products from local producers during the year, as it increased its focus on regional diversity.
Sales of organic food increased by 3.0%, and products with ecological or social added value grew by 0.7%, to CHF 3.4 billion (€3.3 billion).
E-commerce
The company’s e-commerce business exceeded the CHF 3 billion (€2.9 billion) threshold in sales for the first time.
It reported 15.5% growth in online sales, to CHF 3.2 billion (€3.1 billion), with the division accounting for more than a tenth of Migros’s total sales.
Its online platforms, including Migros Online and Digitec Galaxus, focused on regional diversity, with an offering of new products and additional locations.
Digitec Galaxus (+17.7%) broke the CHF 2 billion sales barrier and focused on price transparency and sustainability, as customers looked at offsetting the CO2 emissions of their purchases.
Investment
In 2021, the total investment made by Migros Group in product innovation, service and industry amounted to CHF 1.5 billion (€1.45 billion).
The ten cooperatives spent CHF 726 million (€704 million) on expanding and modernising their stores, with some funds also flowing into Migros Industrie, which invested in modernising its production facilities.
© 2022 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.
