The Migros retail chain is embarking on a major transformation to win back customers it has lost to discounters. To achieve this goal, they are investing a whopping 2.5 billion Swiss francs.
The Big Revamp: Shopping at Migros will be different in the future.
In the next five years, Migros will open 140 new stores, investing a total of two billion Swiss francs. This was announced by the company on Monday. The new stores will mostly be smaller supermarkets in areas experiencing significant population growth. This expansion will increase Migros’ store network from nearly 790 to 930 locations by 2030. For comparison, its main competitor Coop currently operates 965 stores.
Migros is currently undergoing its largest transformation in history as it has lost crucial market share to competitors. While previous efforts focused on restructuring and selling off specialty stores, today’s announcement signals a shift towards revitalizing its core business of supermarkets. It appears that the retailer aims to directly engage with customers—the press conference for the new strategy was even held at a Migros store at Zurich’s Limmatplatz.
Lower Prices, More Private Labels
Additionally, the company plans to adjust its prices to match those of discounters. Over the next two years, more than a thousand products will see price reductions. Migros will invest 500 million Swiss francs over the next five years in these price cuts.
In recent years, Migros had begun offering more branded products. Part of the new strategy is to increase the share of private labels once again. Migros CEO Mario Irminger has emphasized the need for their own industry to focus more on producing affordable products tailored to the supermarkets’ needs.
More to come…