Migros sees sales rise 4% in 2020

Date : 21 January 2021

Keshia Beadle

Senior Retail Analyst

Switzerland-based Migros has reported Group sales rose 4% to CHF29.8 bn (US$33.5 bn), with retail sales outperforming. Migros said retail sales, which were driven by its growth online, increased by 7.2% to CHF24.2 bn (US$27.2 bn).

Pandemic underpins sales growth in Switzerland

Migros said its growth in 2020 was underpinned by changing shopper behaviours, which pushed its online channel’s increase in sales to 31.0%, to almost CHF3.0 bn (US$3.4 bn), and, therefore, saw the channel account for more than 10% of its total for the first time. Migros said the pace of sales growth meant it was able to further extend its market leading position in the online channel.

Growth was aided by the opening of eight new supermarkets. Despite the addition of the new stores, Migros reported its total sales area fell 4.3%, to 1.4m sq. m, underlining the increase in its sales per sq. m. Meanwhile, Migros reported its discount banner, Denner, saw sales rise by 15.7%, to CHF3.8 bn (US$4.3 bn), and its Migrolino convenience banner saw its revenue increase by 20.8% to CHF716m (US$805.2m).

Migros Online grows sales by 40%

Migros Online, which used to be known as Le Shop, saw sales increase by 40% to CHF266m (US$299.1m). The service delivered 43.6% more orders in 2020, versus the previous year. To meet growing demand Migros Online added further capacity with the addition of new warehouses, while it also expanded its range by 2,000 SKUs.

Good growth in Germany

Migros said its 10 cooperatives generated sales of CHF14.9 bn (US$16.8 bn) in Germany. The Tegut supermarket chain saw sales grow by 9.6% to CHF1.5 bn (US$1.7 bn), while they also saw growth, of 7.4%, at their hypermarkets and supermarkets, where sales reached CHF12.5 bn (US$14.1 bn). Meanwhile, the cooperatives’ smaller, neighborhood shops, achieved double-digit growth, as shoppers looked to make purchases closer to home. As with other retailers, shoppers made fewer trips, but basket sizes increased. Underlining the importance of organic ranges, Migros said such products enjoyed a sales increase of 15.6%, while sales of products offering ecological or social added value, achieved growth of 7.4%, to be worth CHF3.4 bn (US$3.8 bn).

Private label strength aided overall performance

Migros said that while its third-party business was affected by the pandemic, its M Industry subsidiary was able to grow sales by 1.8% to CHF5.98 bn (U$6.7 bn). M Industry was able to benefit from continued strong sales within the Migros cooperative business, which was aided by the ranges delivering good value and a differentiated product for shoppers.