- The retailer made a net profit of 1.76 billion Swiss francs. The reason is extraordinary income.
- In 2019, Migros reported a profit of CHF 335 million.
- In 2020, sales rose by 4.4 percent to almost 30 billion francs.
The retailer announced that company and real estate sales let net profit shoot up in the past year.
The result was significantly influenced by one-off effects from the sale of Globus and the sale of the Glattzentrum. Without these extraordinary proceeds, Migros still recorded a net profit of 555 million francs.
Setbacks in travel and gastronomy
The corona pandemic had a significant impact on the Migros Group’s business in 2020. In the shops and on the online platforms, demand increased significantly. The online retail sales climbed by almost half to almost three billion francs.
Migros does not shy away from the competition
People are paying more attention to sustainability, as Migros also felt last year. For example, sales of organic food at the orange giant increased by almost 16 percent. Regional products were in demand. Discounters such as Aldi and Lidl have also noticed this and are now also relying heavily on Swiss products. That, in turn, could further increase price pressure in the retail trade. Migros boss Fabrice Zumbrunnen takes it calmly: Migros is heavily financed to survive in the competition, he says. Accordingly, Migros will continue to focus on the classic retail business with a focus on food. But the health business is also to be expanded further: Migros only generates sales of around 400 million francs with medical centers and pharmacies, among other things, but the jump in sales of almost 70 percent compared to 2019 shows the potential of this area. (Iwan Lieberherr)
On the other hand, Migros suffered painful setbacks in the travel, gastronomy and fitness and leisure sectors. The tour operator Hotelplan Suisse experienced the worst financial year in its 85-year history with a steep loss due to travel restrictions.
In the catering sector, sales fell by 42 percent to 434 million francs. At Migros Bank, profits fell by a good 16 percent, as additional value adjustments for loan defaults were made due to Finma requirements.
Sales increase thanks to online boom and hamster purchases
In terms of sales, Migros continued its record hunt during the corona pandemic, as it had already announced in January. Hamster purchases and the online boom helped her to increase sales by 4.4 percent to 29.95 billion francs. This means that Migros has once again improved its record of CHF 28.7 billion from 2019 and stayed just below the CHF 30 billion mark.
In addition to online trading, the supermarkets as well as the discounter Denner and convenience stores were the growth drivers. Retail sales, which include the cooperative retail trade and the companies in the trading segment, rose by 2.6 percent to CHF 24.38 billion.