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Distribution analysis of Migros

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  1. PPR and Puma, two complementary businesses
    1. PPR: a global player in retail and luxury
    2. Puma's luxury sporting goods
    3. The bid
  2. Common interests of both entities
    1. PPR's expertise in the service of PUMA
    2. The positioning of PUMA, a strategic asset for PPR
  3. Puma: The first positive balance sheet
    1. A risky debt but controlled by PPR
    2. Preliminary results satisfactory
    3. However, a mixed effect on the stock market

Founded in 1925 by Gottlieb Duttweiler, Migros is a conglomerate of Swiss companies in the retail sector. Its head office is based in Zurich, Switzerland. Migros is the largest distribution company in Switzerland with 37% market share. It has over 81,600 employees and 2 million shareholders, and has 590 stores located primarily in Switzerland. In 1993, it expanded to France, Italy and Germany. Migros is actively growing year after year despit the massive competition It is still facing a lot of competition from other retail groups such as Coop, Manor or Aldi.

Swiss cooperative society Migros, active in the retail sector, is a major company that offers diverse products including food, electronics, cosmetics, and household items.

Migros has adopted a very special and unique implementation since its inception, namely that it does not sell alcohol and tobacco.The Migros Group has expanded with more acquisitions or new businesses such as Denner shops (selling discount products), the airline Belair or Migrol gas stations.

At first, Migros sold only staple food products at prices 10 to 30% cheaper than the competition. It began by selling only a few products i.e., coffee, rice, sugar, pasta, cooking oil, nuts, soap, etc.
Over time, Migros expanded its range to launch more diversified products at low price - the M Budget which became a resounding success; in only two years, the range of discount products increased from 70 different articles in 2006 to over 500 in 2008 (Mountain biking and snowboarding equipment, chocolate, jeans, lighters, etc).

This new range has a high economic value, accounting for a turnover of 653 million Swiss francs or 460 million euros. Conversely, Migros has also launched a line of premium products called Migros Selection, comprising mainly food products. This range provides high quality products in a specific golden packaging.

Tags: Cooperative retail chain Migros, M-Budget, Migros Selection

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