Retail trade Migros wants to become cheaper with own brands and smaller stores
Migros wants to become cheaper with its own brands and smaller branches. Migros boss Mario Irminger also announced in an interview on Sunday that there will be no further major job cuts.
23.06.2024, 01:52
23.06.2024, 02:11
SDA
The expansion of own brands is a "blatant break" with the previous strategy, said Irminger in an interview with the "SonntagsZeitung".
Popular branded products are undisputed and will continue to be offered, but Migros will remove less popular branded products from its range. It is not yet clear which ones. The Group's own market share is currently a good 80 percent, said the CEO.
Price shift towards the discounter
The retailer expects consumers to have less purchasing power in the future. In terms of price, Migros wants to move closer to the discounters without becoming a discounter itself. A merger with Denner is out of the question. "We need Denner to be able to defend ourselves against the two German discounters," said the Migros boss.
The stores of the future would not look much different than they do today. Instead of large branches, there will be more smaller stores, said Irminger. There would no longer be big weekend shopping trips. On average, customers would shop three or four times a week.
Job cuts on a smaller scale
The orange giant is undergoing restructuring. "There will no longer be such major job cuts," said the company boss in an interview. However, job cuts on a smaller scale are possible.
The already known job cuts affect various areas, the CEO said in the interview. With the sale of the specialist stores, jobs in administration, logistics and IT would also be lost. Many permanent positions have been converted into temporary jobs and vacancies have not been filled.
At the beginning of February, the Migros Group announced the reduction of up to 1,500 of the total of around 100,000 jobs. Most recently, it was announced that Melectronics would be sold to Mediamarkt and that the retailer intended to divest itself of other subsidiaries. Many employees will have to look for a new job.
