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March 29, 2012

SWITZ: Migros profits drop 22% on “consumer tourism”

Switzerland's largest retailer Migros Group has booked a 22% drop in profit for 2011, as the strong Swiss franc and "consumer tourism" hit the group's results.

Switzerland’s largest retailer Migros Group has booked a 22% drop in profit for 2011, as the strong Swiss franc and “consumer tourism” hit the group’s results.

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Migros said yesterday (28 March) that its profit fell CHF192m (US$212m) to CHF659m during 2011. Losses were seen across all of the company’s businesses, with the exception of its banking unit, and were led by a CHF84m fall in profit at the group’s food retail business. 

The company said its profits were hit by pricing initiatives it used in a bid to fight off the growing threat presented by the increase in “consumer tourism”. Swiss consumers are increasingly travelling to neighbouring countries to do their shopping, propelled by the strength of the Swiss franc against the euro. 

Migros also revealed it had lost market share in Switzerland, where it has been squeezed by increased competition, particularly from German discounters like Lidl an Aldi. Migros’ share of supermarket sales in Switzerland fell 0.6 percentage points to 26.7% in the period, the group revealed. 

Sales at the group’s retail business were down 3.3% to CHF14.7bn, with Swiss sales dropping 3.4%. The company said it was able to maintain the position of its discount Denner banner, where sales were almost flat at CHF2.78bn. However Globus declined by 2% to CHF788.1m and Interio saw the biggest losses, with a 5.7% drop in revenue to CHF242.7m.

Meanwhile, sales from Migros’ manufacturing arm M-Industrie, which includes dairy processor Elsa and chocolate manufacturer Chocolat Frey, increased 0.3% to CHF5.33bn.

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What are the key consumer trends driving FMCG in 2022?

The consumer landscape has permanently changed since the COVID-19 pandemic began, prompting trends to emerge or accelerate, causing subsequent macro-economic shifts. In order to stay relevant, Consumer Packaged Goods companies must stay abreast of these developments. It is here that GlobalData can offer valuable assistance. Download GlobalData’s Trendsights: Trends to Watch in 2022 report to:
  • Gain insight into the 12 most important trends across the FMCG value chain
  • See the consumer survey data that underpins these insights
  • Learn what early-movers are already doing in terms of NPD and product marketing
Take a look at this report to give yourself the best standing in this developing market.
by GlobalData
Enter your details here to receive your free Report.

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