“Migros’ turnover in 2024 should be higher than the 32 billion francs of the previous year” declared Mario Irminger, the boss of the orange giant.
Opening new stores in French-speaking Switzerland and modernizing existing ones: these are some of the objectives of Mario Irminger, president of the general management of the Federation of Migros Cooperatives (FCM), for this year. The sale of the Hotelplan subsidiary should be finalized soon. Sales are also expected to increase.
“Migros’ turnover in 2024 should be higher than the 32 billion francs of the previous year,” Mario Irminger said in an interview published Monday in the German-speaking newspapers of CH Media. The boss of the orange giant expects operating results to be “as good, or even better, than in 2023”.
The major distributor presented a profit of only 175 million in 2023, one of its worst results. “A year ago we had to carry out very significant special write-offs. This will no longer be the case this time. From a purely operational point of view, we are doing a little better in terms of profitability,” explained Mr. Irminger.
In 2025, however, sales will be reduced by 500 million due to the strategy of lowering prices. “At the same time, we should sell more in volume. This means that supermarket sales are expected to remain stable. Online sales in the non-food sector will continue to grow strongly,” assured the boss of Migros.
Other layoffs in sight
However, Migros will suffer significant losses this year following the sale of its specialist markets. “The latter recorded a loss of more than 200 million per year,” reveals Mario Irminger in another interview also published Monday in the Vaudois daily 24 Heures, adding that the sale of Hotelplan should be finalized in January or February.
The orange giant began the biggest transformation in its history in 2024, announcing in February the elimination of 1,500 positions. Some 726 positions have already been lost so far. In the CH Media newspapers, Mr. Irminger suggests that there will be further layoffs in 2025.
In addition, in its objectives for 2025, Migros intends to develop in the Lake Geneva region. “We are under-represented in this part of Switzerland and we will need to open more stores. In French-speaking Switzerland, the need to renovate branches is also important,” underlined Mr. Irminger in 24 Heures. The management of the major distributor also plans to expand its medical services in French-speaking Switzerland and open doctors’ offices.
Since 1is January, the VAT exemption was lowered from 300 to 150 francs in order to combat shopping tourism. Good news for the president of the general management of the FCM, who would however have liked an additional turn of the screw. “A reduction to 50 francs would have been ideal,” he says in the CH Media newspapers.
Migros is celebrating its 100th this yeare birthday. On this occasion, the orange giant transforms its name into “Thank you” to “thank the Swiss population for their loyalty”, according to a press release published Monday. The logo will be partially adapted.
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