Retail trade Globus struggles for profitability - strategy faces test
The Swiss department store chain Globus wants to be profitable by the end of 2026. The question of whether the Thai owners will still have patience until then is currently being discussed - also in view of the imminent repayment of a loan.
27.10.2025, 13:57
SDA
In May 2026, Globus must repay a loan of 125 million Swiss francs to its former owner Migros. However, the new Globus owner, the Thai Central Group, does not want to inject any further capital, as the "NZZ am Sonntag" writes with reference to insiders. It has already invested around one billion Swiss francs in the purchase, expensive renovations and modernization of the stores. This could now get Globus into trouble.
Since the arrival of the new CEO Pierluigi Cocchini, who also runs the Italian department store chain La Rinascente, "a different wind" has been blowing through the traditional company, the newspaper writes. The focus is on discounts and changing themed sales. There have also been staff departures.
Migros confirmed to the news agency AWP that the repayment of the loan is due on this date. It is partially secured by guarantees. There are currently "no indications of any non-compliance", according to a spokesperson. The media offices of Globus and the Central Group had not responded to repeated inquiries by midday on Monday.
Expert sees no reason to panic
While there are already discussions on social media about the possible demise of Globus - similar to that of Jelmoli - retail expert Marcel Stoffel is more optimistic. "The conditions for Globus to continue to exist have probably never been as good as they are today," he writes in a comment on the Linkedin platform. However, the path to a successful future will not be easy and will probably entail "drastic consequences".
In concrete terms, this means that Globus will have to streamline its structures. "If a department store wants to survive these days, it needs adaptability and a consistent strategy," explains Stoffel in an interview with AWP. As a globally active group, the Central Group must optimize the structures of its subsidiaries in order to secure their future.
Globus is currently in a phase of consolidation, as are other department stores in Europe. "I have confidence that Globus can continue to exist in Switzerland," says Stoffel. The new operator just needs to be given enough time to implement its strategy.
New Globus management focuses on new offerings
The new Globus management team led by Pierluigi Cocchini presented this strategy at the beginning of the year. In order to be in the black by the end of 2026, the company is focusing on synergies in marketing, a stronger premium offering and more intensive collaboration with luxury brands. In addition, new offers should attract people to the stores.
The main store on Zurich's Bahnhofstrasse, the Globus in St. Gallen and the location on Zurich's Bellevue are already appearing in a new form. Next week, the store in Basel will open its doors after a three-year renovation: it offers plenty of light, a central atrium and green roof terraces.
