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
[...] Switzerland is popular for its banks and luxury goods, primarily in the field of watchmaking. This is a rich country and not a member of the European Union. Switzerland has its own currency called the Swiss franc. The Federation of Migros Cooperatives is the parent company of the Swiss group and is divided into regional cooperatives. Migros is the largest co-operative in Switzerland and has 37% of the market share. It has over 81,600 employees million shareholders and 590 stores that are located primarily in Switzerland. [...]
[...] III) Comparison between the situation of Migros in Switzerland and that of Leclerc in France The French distribution group that is closest to Migros is without doubt one of Leclerc. They are both primarily food retail. They are very diverse in different service sectors like banking, gas stations etc but both have had difficulty when it came to opening outlets abroad since they are very poorly developed beyond their respective territories. Migros is located in Italy, France and Germany while Leclerc has established several shopping centers in Italy, Poland, Portugal, Spain and Slovenia. [...]
[...] Both groups have a similar impact on the community and about the same number of stores. Both store have increased their growth since their previous years and this is evidence of their current good health. We can assume that the difference in revenue based on the number of potential customers in each of the respective firms is due to the fact that Switzerland has only 8 million people when compared to France's population of more than 63 million. When the proportions are taken into account, Migros is economically more effective than Leclerc. [...]
[...] The owner benefits from the brand image of the group and has the possibility of increasing his sales. Migros is essentially composed of supermarkets that are divided into three categories based on their size. These categories are known as MM and MMM. The Migros brand is based on the principle of quality. Thus, the prices of its products are quite high in comparison to those of French groups. However, this trend has reversed in recent years with falling prices which did not affect a significant increase in profits. Logistics is the highlight of the Swiss company. [...]
[...] One of the special feature of Migros stores is that they do not sell alcohol and tobacco. This feature is unique to the Migros retail chain. The Migros group has expanded with several acquisitions and new businesses such as Denner shops (make sales at discount prices), the airline Belair and the Migrol gas stations. At the beginning, Migros only sold essential commodities at market prices which were 10% to 30% cheaper than the prices of their competitors. It began by selling only a few products likr coffee, rice, sugar, pasta, cooking oil, the coconut and soap. [...]
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