Migros Lucerne Sees Profits Fall By 7% In 'Challenging Environment'
Swiss retail co-operative Migros recorded a 6.8% decrease in profit in its Lucerne division last year, with profits falling to CHF47.1 million (€35.6 million).
The Migros Lucerne cooperative posted sales of CHF1.43 billion (+0.9%), but EBIT came in at CHF47.7 million (-8.5%), following what it described as a 'challenging environment'.
The retailer, which serves the central Swiss region welcomed 3.3% more customers through its doors last year, however, average customer spend was down 1.7% to CHF35.78.
Sales of Migros’ regional products grew 1.8% to CHF131 million, accounting for 14.2% of sales in its food business. Organic sales increased as well, increasing 13.2% to CHF71.5 million and almost doubling over the last five years, according to Migros.
The group's specialist stores Do it + Garden Migros, Micasa, SportXX and melectronics recorded a decrease in sales of 3%, according to the retailer.
During 2017, Migros Lucerne invested CHF35.9 million in new buildings and renovations, which included the MParc and the ‘Mall of Switzerland’ in Ebikon, just outside Lucerne.
The expansion of Migros’ operations centre in Dierikon also began, which will be completed in various stages by 2021, and see an investment of CHF28 million. The new centre will aim to meet the demands of Migros' central Swiss network, according to the retailer.
Despite the economically-challenging environment, Migros Lucerne said it will increase wages by 0.9% for its almost 6,000 employees. The retailer is the largest private employer in the region.
Earlier this year, Migros posted stable growth for its overall operations in 2017, with sales increasing by 0.9% to CHF23.5 billion.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Kevin Duggan. Click subscribe to sign up to ESM: The European Supermarket Magazine.