In an interview with SonntagsZeitung, the head of Migros, Mario Irminger announced that the Swiss supermarket chain would be focusing on cheaper products in the future. It comes as the Orange Giant embarks on a wave of restructuring, sales and cuts, with many workers expected to lose their jobs.
Irminger confirmed that Migros “wants to become more affordable” for shoppers in the future. He said that the company will focus on expanding “the range of products in the low price range”, especially its own brands. He added that while they do not want to mimic brands like Aldi and Lidl and will continue to offer luxury items, they "want to move in the direction of the discounters in terms of price.”
So far in 2024, Migros has cut the prices of 450 everyday products by up to 20 percent, with the CEO predicting that up to 1.000 products will be reduced in price by the end of this year. “Popular branded products are undisputed and we will continue to offer them. However, we will remove some less popular branded products from our range so that we can increase the share of our own brands,” he added.
When asked why he was cutting prices, Irminger explained that the current economic situation means that many people are cutting back on spending. “When people in Switzerland retire, their purchasing power drops by around 30 percent compared to the last salary they received. While wages have only increased slightly on average, fixed costs have risen much more sharply - for example due to exploding health costs, high rent and energy costs.”
However, while Migros has committed to expanding its supermarkets, Irminger’s comments come just a week after the cooperative confirmed that it would be cutting a number of its subsidiaries. Melectronics (now sold to MediaMarkt), Micasa, Bike World, Do it + Garden, SportX, Misenso and OBI are all either up for sale or being reviewed.
Migros is expected to cut up to 1.500 jobs this year, as it refocuses solely on supermarkets. Irminger explained that many of its specialist stores and those overseas are very unprofitable, putting extra pressure on their supermarkets to make a profit. While the decision to cut the brands “was not easy…The decision to sell the specialist stores enables the cooperatives to invest in the supermarkets again,” he concluded.
Nevertheless, many including the Unia trade union have protested against the closures. Speaking to Swissinfo, a spokesperson for the union argued that the cooperative should invest more in its workforce, rather than cutting its services and spending what it claims is hundreds of thousands of francs a month on restructuring consultants.
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