Migros, Switzerland's leading grocery retailer in terms of revenue, has reported a slight decrease in sales during 2011 to SFr21.09bn, although it claimed to have achieved real growth of 2.1 per cent when accounting for what it described as 'massive' price deflation over the past 12 months.
Nonetheless, concerns will be raised by the group's earnings before interest and taxes for the year, which were down by SFr197.2m (16.8 per cent) to SFr979m, and by its annual net profit, which came in at SFr659.3m, 22.6 per cent lower than in 2010.
Herbert Bolliger, president of the Federation of Migros Cooperatives, remained positive about the work being done by the company behind the scenes to adjust to the new economic environment.
'Migros is a very healthy and profitable company,' he commented. 'Despite significant challenges at all stages of the value chain, we have succeeded, with sustained increases in efficiency, innovation, massive price cuts and consistent cost management, to achieve solid operating results.'
According to Planet Retail, Migros is teaming up with German organic supermarket chain Alnatura to establish a new organic grocery format based on Alnatura's own store concept in Germany.
The retailers have said they intend to establish a concept store in Switzerland this summer under the name Alnatura-Migros.
