German stores boost Migros bottom line
Malcolm Curtis · 2 Apr 2014, 23:03
Published: 02 Apr 2014 23:03 GMT+02:00
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The cooperative group said revenues rose seven percent to 26.7 billion francs from the previous year.
Net earnings rose for a third consecutive year, up from 724 million francs in 2012.
The merchandiser, which has diversified into areas such as banking and hotels, saw higher sales despite an overall drop in retail prices of 0.1 percent in Switzerland.
But much of the improvement in revenues was down to income from Tegut, a German supermarket chain that Migros acquired in 2012.
Migros, which employs 94,300 people in Switzerland and abroad, acknowledged the economic context remains difficult.
CEO Herbert Bolliger said he expects “stable” prices for 2014 for Migros’s supermarkets and hypermarkets, although he expects pressure on prices to continue on non-food merchandise.
In addition to its own brand food stores, Migros owns the upscale Globus department store chain, the discount Denner chain and Migrol, a network of service stations.
Migros’s results come after arch-rival Coop reported slightly higher revenues of almost 27 billion francs in 2013, up 0.9 percent from the previous year.
Coop reported a net profit of 462 million francs for the year, up 10 million francs from 2012.
Together, the two cooperative groups dominate Switzerland’s retail sector.