New owner for melectronics – focus at Migros Industrie

As part of its strategic focus on its core business, the Federation of Migros Cooperatives (FMC) has announced solutions for its specialist stores, the first of which is the successful completion of the sale process for the Migros specialist store melectronics. MediaMarkt is acquiring 20 of the 37 melectronics locations and will also continue to employ the staff and apprentices working there. The acquired stores will continue operations under the “MediaMarkt” brand. A total of 17 melectronics stores are to close by November 2024. The approximately 100 employees affected by the store closures will be offered other positions within or outside the Migros Group wherever possible.

As already communicated, the sale of melectronics will also lead to changes in around 50 larger Migros supermarkets. At these locations, the integrated melectronics sales areas will be reduced to a basic range of electronics products. Migros will continue to honour existing warranties for products purchased from melectronics. Customers can contact any customer service point at the Migros supermarkets about this. The takeover is currently still under review by the Competition Commission.

Divestment of Micasa, Bike World and Do it + Garden planned

Following an in-depth analysis, the Board of Directors of Migros Specialist Market Ltd has decided to also initiate divestment processes for the Micasa, Bike World and Do it + Garden specialist stores. The divestment processes will not change anything for customers and business partners of Micasa, Do it + Garden and Bike World. All business continues to run reliably as before.

s a franchisee, Migros also operates ten OBI locations throughout Switzerland. A project group led by the Migros Basel Cooperative is currently working on possible future options for the strategic direction and operation of the franchise. The ten OBI locations in Switzerland will remain open. The divestment process for SportX, which was launched in February, is on track and still ongoing.

Changes at Migros Specialist Market Ltd

The sale of melectronics will result in changes at the service company Migros Specialist Market Ltd, which is responsible for the strategic direction of the specialist store formats and provides central services such as procurement and marketing. Employees who work directly for melectronics will lose their jobs. This will result in the loss of around 50 jobs at Migros Specialist Market Ltd. Adjustments within decentralised organisations are also possible in relation to the divestments.

Migros Industrie – focus on the supermarket business

In future, Migros Industrie will focus on its role as an integrated producer for the Migros Group in the core Swiss market and the production of own brands for third parties. This realignment includes changes at food producer Delica AG, milk processor Elsa Group and Migros Industrie AG, which is active across the board. Unfortunately, this realignment makes the loss of around 365 jobs unavoidable.

Several areas of Delica AG, including foreign companies, are being reduced. Abroad, Delica is withdrawing from some brand business and focussing on own brands for third parties. The Frey International brand and the brands for coffee beans and ground coffee in Germany are therefore being discontinued. The production of own brands for third parties will continue, with clear added value for Migros. These measures will result in a reduction of around 255 full-time positions at Delica, 190 of which will be in Switzerland, with the remainder in Germany. More than half of the reductions are due to natural fluctuation and without redundancies.

The Elsa Group is planning to reduce the activities of its subsidiary Schwyzer Milchhuus in Central Switzerland. Operations in Rothenthurm and Brunnen will cease, with the two locations closing in the first quarter of 2025. At the third location in Engiberg, the dairy for processing milk, cream, yoghurt and vegan yoghurt will continue operations. Cheese production will also cease at the end of 2024. The planned closures will result in the loss of 45 jobs. Many of the Schwyzer Milchhuus products will remain in the Migros range and be produced at other Group locations, namely in Ursy (FR) and Oey (BE), or by third parties. The Elsa Group will continue to purchase and process milk from the existing suppliers in Central Switzerland.

Migros Industrie AG, which acts as the central unit for all divisions of Migros Industrie, is realigning itself. The main objectives of this reorganisation are simpler structures, clear roles for better controllability and the elimination of duplication. This will result in around 65 job cuts at the Migros Industrie AG location in Zurich. Eight employees are being offered new jobs.

Redundancy package with generous benefits

These decisions will result in a total of around 415 job losses. The Migros Group has finalised a comprehensive national social plan with internal and external social partners to cushion the impact of redundancies as far as possible (see press release dated 15 May 2024). Employees affected by job cuts in Switzerland receive individual benefits linked to their seniority and age, among other factors. They will also receive support in their search for new positions within and outside Migros from HR and specialised external partners.

Focus on core business

The decisions are part of the transformation of the Migros Group announced at the beginning of February, which will result in the loss of up to 1,500 of the Migros Group’s approximately 100,000 jobs. Migros will increase the attractiveness of its core business for customers and focus specifically on those business areas in which it can continue to be successful in the future. By concentrating on its core business, Migros aims to consolidate its position as the number one Swiss retailer. It aims to appeal to its retail customers with attractive prices, top quality and good service as well as a wide range of products for every budget.