The arrival of European discount chains reflects the unique attractiveness of the Swiss market. With high purchasing power and a more stable economy than that of its neighbors, Switzerland represents a strategic opportunity for large groups. International brands see it as a fertile ground to expand their activities and compensate for low margins with increased sales volumes.
In this context, ActionDutch non-food discounter, and Rossmana German chain specializing in drugstores, have confirmed their intention to expand in the country. These brands intend to capture a share of a market where consumers, although known to be demanding on quality, are showing themselves increasingly price conscious.
Pressure intensifies on local brands
For decades, Swiss retail has been dominated by local players like Migros et Coop. However, the rise of international brands has considerably changed this balance. According to “Tages-Anzeiger”, Action plans to open its first stores in Basel, Bachenbülach et Winterthour, with advertisements promising unbeatable prices: “ 1,500 products for less than 1 franc ». Rossmanfor its part, aims toset up around a hundred stores in the next five to six years.
This foreign offensive is part of a broader trend which has already seen historic Swiss brands disappear or be bought. Vogele Shoesfor example, did not survive market challenges. Franz Carl WeberSwiss symbol of toys, now belongs to the German Müllerwhile Athleticum was absorbed by Decathlon. Migros itself had to restructure its portfolio, because after selling Interior has XXXLutz in 2019, the Swiss giant is now looking for a buyer for its stores « Do it + Garden ».
The rise of foreign discounters
Experts explain this dynamic by a key phenomenon, namely the size and volume of purchases. “ In retail, where margins are low, size is decisive. Only those with significant purchasing volume have sufficient market power to offer competitive prices. “, says Jörg Staudacher of the Zurich University of Economics. The elocal brands struggle to compete faced with the negotiating power of multinationals, which explains their decline in the face of competitors like Aldi, Lidlor more recently, Action et Rossman.
For Swiss consumers, the arrival of these new players is viewed favorably. According to Sara Stalder, director of consumer protection, this competition could encourage a drop in priceseven if the famous “Swiss surcharge” remains a major obstacle. The director of the Swiss Retail Federation, Dagmar Jenni, agrees, stating that “ price sensitivity has become higher among the Swiss populatione ».
In online commerce, the phenomenon is similar. Platforms like Ago et Shein, of Chinese origin, are quickly gaining ground in Switzerland thanks to their low prices and their global offering. However, Swiss actors are trying to resist: Digitec Galaxusbranches of Migrosremains the leader in e-commerce in the country, even ahead of Amazon et Zalando. To maintain its position, the company decided to expand into Germany, although history shows that Migros has never managed to establish itself outside of Switzerland.
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