Thus, the head of Migros Fabrice Zumbrunnen cleans his company



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Ironically, the premium brand is the big problem child of Migros. Globus Department Stores has launched Migros, a mega copier in business books. In numbers: 90 million francs! Globo makes a loss. The head of Migros, Fabrice Zumbrunnen (49), is silent about his height. His CFO, Jörg Zulauf (61), says no more copiers are expected. However, he expects 2021 again at a profit.

Value adjustments at Globus, especially indoors and few software products, as it is called on demand, contribute. Migros's profit continues to decline. The fourth consecutive year. In the last fiscal year, 475 million francs out of the bargain. That's 5.5% lower than the previous year. No more than 15 years.

Although Migros has more cooperative members than ever, more and more people are shopping at Migros and the economic engine is booming.

Well Trained Team: Source and Turnout

With a profit margin of only 1.7 percent, Migros does not reach its targets. According to Zulauf is expected in two to three years again with 2 to 4 percent. Good and good time: "Migros continues to be a healthy company – despite all the doubts," says the CFO. It points to a slightly better operating profit of 651 million. "However, this is no reason to lie on the net."

Zumbrunnen adds: "We are working to improve our performance." He clarifies: "We do not dismantle, we build."

Here you are arranging

But first it's time to clean. Measures, says Zumbrunnen, have already been taken. In the case of Globus, this means filling gaps in the loss and further promoting its "digital transformation". Especially in fashion suffers Globus, who had stamped the shield brands and Herrenglobus and closed a number of stores or rebuilt. Zalando and Co.'s online competition is huge.

By the way, not only Globus, but all business units are faced with digital transformation. Industry, logistics, everything, "says Zumbrunnen.

This is where the Puma project comes in, as Migros is called internally. For some, this is a program of pure austerity: Zumbrunnen himself prefers BLICK to "the most important development program."

Business sector under pressure

Because: "It's about the entire Migros value chain. We expect a lot from the program." Affected is the collaboration between marketing, M-Industry and M-Logistics and the ten cooperatives. Puma would reduce the power of regional princes to improve efficiency within the Migros Empire.

Above the average of the digital transformation under pressure is the Department of Commerce, which includes Globus. It almost doubled the operating loss to CHF 152 million. According to Zumbrunnen, Migros is investing heavily in the expansion of e-commerce. Especially in online markets such as Digitec Galaxus – 2019, billions of sales are expected for the first time – and its interweaving with stores and the Swiss network of collection points (PickMup).

Here Zulauf sees the need for action

"First, Migros needs to find a better balance," says CFO Zulauf, in the direction of the Department of Commerce. In contrast to trading, profit-generators include cooperative retailers (such as Denner, Migrolino), Migros Bank and M-Industry.

In the field of health care, signs mean dismantling or remodeling. "We continue to expand affordable health care for the population," Zumbrunnen said. With offers of prevention, medical services and rehabilitation. This business does not suffer in contrast to problem child globe and is happily.

This is how Migros gets compared to Coop

Sales of Migros rose 1.3% last year to CHF 28.4 billion. This is a new record. In retail, Migros converted CHF 23.7 billion. In comparison, rival rival Coop achieved total sales of CHF 30.7 billion. In the Swiss retail, however, Coop's turnover was 17.8 billion francs less than that of Migros. However, the profit of the Migros group fell for the fourth consecutive time: operationally improved slightly, Migros had a final profit of 475 million Swiss francs. This is a decrease of 5.5 percent compared to 2017. Coop made a profit of 473 million francs, which represents 2.6 percent less than the previous year. The Basel wholesaler blamed the profit diver for the online market with Siroop losses. The Zurich Limmatplatz competition, on the other hand, seeks to blame the decline in Migros' profit on Globus. Significant value adjustments had to be made in the subsidiary.

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