Swiss retail group Migros has reported a 4.2% year-on-year increase in sales to CHF 30.1 billion (€30.7 billion) in its financial year 2022 despite a challenging market environment, while retail sales declined 0.3% to CHF 24.7 billion (€24.7 billion).
Profit, which amounted to CHF 459 million (€460 million), was affected by the strong increase in the cost of raw materials, packaging and energy, to a large extent absorbed by Migros Group itself, in order to stem price increases for end customers.
The company added that it consolidated its leadership position in the Swiss market in the online channel as well as brick-and-mortar retail.
Online sales grew 14.9% to CHF 3.7 billion (€3.7 billion) during the financial year, with the Migros Online supermarket generating CHF 328 million (€329.3 million), down 0.7%.
The ten regional Migros cooperatives, including subsidiaries, generated net sales of CHF 15.9 billion (€16 billion), down 2.0%.
Supermarkets and hypermarkets, including Migros Online, achieved a turnover of CHF 12.3 billion (€12.4 billion) (down 3.1%) in the Swiss market, while the gastronomy sector increased sales by 46.5% to CHF 577 million (€579.3 million).
"Financially, the Migros Group is on a sound foundation more than ever and can therefore offer its customers attractive prices and shopping experiences in a demanding market environment," said CFO Isabelle Zimmermann.
Organic food sales, excluding Alnatura supermarkets, rose 1.2% to CHF 1.26 billion (€1.3 billion), while turnover from products with ecological or social added value increased by 1.5% to CHF 3.45 billion (€3.5 billion).
Migros expanded the range of vegetable-based products and milk substitutes of private-label brand V-Love by around 40 products to over 150 items.
Alongside online retailer Digitec Galaxus, convenience chain Migrolino saw continued growth with sales increasing by 5.1% to CHF 784 million (€787.2 million), while discount retailer Denner expanded its share despite seeing a sales decline of 3.2% to CHF 3.68 billion (€3.7 billion).
Capex for the year stood at CHF 1.6 billion (€1.6 billion), up from last year’s CHF 1.5 billion (€1.5 billion), It was mainly targeted for the modernisation of its store network, efforts to reduce CO2 emissions and digitalisation of processes.
Moreover, the retailer replaced all disposable plastic cutlery across all stores by the end of 2022, as part of its efforts to reduce the use of plastic across its operations.
© 2023 European Supermarket Magazine – your source for the latest Retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: European Supermarket Magazine.