Migros supermarkets head for red numbers

Migros supermarkets head for red numbers

Zurich (awp) – Migros supermarkets, the orange giant’s core business, are heading towards the red numbers. According to the Sonntagszeitung, only the ancillary business of Migros is still doing well. These poor figures are said to be behind the departure, at the end of April 2023, of boss Fabrice Zumbrunnen, announced at the start of the past week.

According to the Sunday, the orange giant will probably post an increase in turnover in 2022, but above all thanks to its ancillary activities such as the tour operator Hotelplan, the Migros Bank, Migrol service stations and dental medicine centers.

Expected net profit down

Net profit should “significantly” decline, according to the newspaper. This will be due to the drop in turnover and profits of supermarkets. Three regional cooperatives (Zurich, Ticino and Valais) would even register figures that are partly clearly in deficit. Basel, Vaud, Geneva, Neuch√Ętel-Fribourg would escape the red, but only partly thanks to secondary recipes.

The Aare Cooperative (Bern, Solothurn and Aargau) will only show a profit thanks to the sale of buildings and participations. Also according to the Sunday newspaper, only the supermarkets of the Eastern Switzerland and Lucerne cooperatives will register substantial profits.

Overall, the operating profit of the ten cooperatives will have fallen by up to 40% this year. If we deduct the many non-recurring effects, the drop would even be nearly 60%. If this trend were to continue, the Federation of Migros Cooperatives fears negative figures in the core business with supermarkets.

Forced departure from Zumbrunnen

In view of the high inflation expected next year, the situation should deteriorate further. According to the Sonntagszeitung, the boss Fabrice Zumbrunnen wanted to take matters into his own hands and save money for the regional cooperatives, which largely escape the influence of the central office in Zurich, but he did not succeed.

The NZZ am Sonntag writes for its part that the departure of Mr. Zumbrunnen is not voluntary. He would have been pushed out by circles close to the administration of the orange giant. He would have mainly made enemies of the influential directors of the regional cooperatives.

hr/rp