Migros crosses the borders of Switzerland

A noteworthy Assembly of Delegates on 6 February highlights the desire of Migros' executive bodies to extend operations beyond the borders of the stagnating domestic market to Austria. The delegates vote 99 to 2 in favour of the agreement in principle with "Konsum Österreich." A week later, Migros CEO Eugen Hunziker, his colleagues Rolf Frieden and Hermann Hasen and the Austrian partners Hermann Gerharter (Konsum Österreich) and Franz Zumtobel (Familia stores) reveal the outcome of the negotiations, which have been ongoing since 1992, at press conferences held in Vienna and St. Gallen: the 112 Familia stores of the Zumtobel Group are to be taken over by Migros St. Gallen and the FMC in March. ➔ As part of a joint venture between Konsum Österreich and the FMC, a new Austrian wholesale chain is formed from the merger between the Konsum wholesale stores (KGM) and part of the Familia store network, which begins operations on 1 October under the name of Familia & KGM with 170 stores. The FMC has a 25% holding in this company. ➔ All Familia and Konsum stores in the Vorarlberg region are merged to create Familia Vorarlberg in which the FMC and Migros St. Gallen hold a 75% stake and Consum Austria—for a limited period—a 25% interest. Familia Vorarlberg, a subsidiary of Migros St. Gallen headquartered in Dornbirn, has 35 stores after a restructuring procedure and operates in a new form from 1 October under the leadership of Robert Kaufmann, Migros Bern's longstanding Head of Marketing. ➔ To optimise the procurement of goods, Konsum-Migros - Warenhandels GmbH & Co. KG is founded in Vienna, in which the FMC and Konsum each hold a 50% stake. It also begins operations on 1 October and handles the procurement of goods, product range and pricing, advertising and logistics for Familia Vorarlberg, Familia & KGM and Der frische Konsum (DFK), whose 634 stores remain under the sole ownership of Konsum Österreich. For the Migros management led by Eugen Hunziker, the commitment to Austria represents both a motivating factor and a great accomplishment. FMC employees perform key roles in Vienna: Wolfgang Brokatzky, Logistics Director, Werner Grunau, Head of Marketing Services and the retired Othmar Ruch, Head of Non-Food Marketing. At the same meeting, the delegates approve a joint venture between Konservenfabrik Bischofszell AG and the French tinned goods producer Lomagenais in southern France.