Despite cost-cutting measures Migros continues to invest in Galaxus expansion in Germany

Migros wants to expand further. Galaxus Germany has been granted financing until 2029 - despite cost-cutting measures.

Keystone-SDA

09.09.2024, 08:34

09.09.2024, 15:43

SDA

Retailer Migros is sticking to its growth plans for Galaxus in Germany despite its cost-cutting program and corporate restructuring. Financing for the expansion of the online platform is secured until 2029, according to a statement issued on Monday.

Florian Teuteberg, CEO of Digitec Galaxus, said in a press release: "We are delighted that the Migros management has approved our strategy and is continuing to invest substantially in Galaxus." He continues to see enormous growth potential in neighboring countries, with a clear focus on Germany. "The fact that we are also scoring points with our northern neighbors with our concept is shown, among other things, by the high return rate and the positive brand perception."

The Executive Board of the Federation of Migros Cooperatives (FMC) has also put the Galaxus expansion to the test, according to the communiqué. However, it has now come to the conclusion that the further development of the online business in the European market is promising.

Galaxus Germany is growing steadily

There is great potential for growth and synergy effects. No financial information is provided.

According to a statement from Galaxus Germany: "Galaxus Germany was launched in November 2018. The first six years of the German subsidiary have been promising: 2.5 million customers have already found their way to Galaxus, and sales in Germany for 2023 amounted to 286 million euros." The online retailer now employs more than 200 people at four locations in Germany.