Migros reports solid 2019 sales growth

Keshia Beadle
Senior Retail Analyst
@RetailAnalysis

Date : 20 January 2020

Strong performance in online, discount and convenience has helped drive sales growth at Migros in 2019.

Sales up by 0.7%

Total sales for the Group grew by 0.7% to CHF 28.66bn. Key initiatives undertaken by the retailer included lowering the prices of its most popular products as well as investing in improving the quality of its private label products. Organic was an area of strong growth, with sales exceeding CHF 1bn for the first time. Sustainability was also an important factor for shoppers, with sales of ecological products up 0.6%. The overall frequency of shopping trips increased by 0.8% to 353 million transactions. 

Online is a priority

Migros is the market leader in online grocery sales in Switzerland and was able to build on this further in 2019. Its online supermarket, LeShop, grew sales by 2.8% to CHF 190mn, with an increase of 7.1% in orders. This growth was driven by expanding the available range, reducing the cost of delivery fees and launching a new subscription model.

Expansion and other developments

Migros opened 10 new locations in 2019, bringing the total number to 737 stores. The retailer also opened three new Alnatura stores, highlighting the growing focus on organic. Its discount banner Denner performed strongly, with sales up 2.3% to CHF 3.25bn, despite strong competition in the discount sector.

 

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