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Migros is aligning its prices with those of discounters: from today, fruit and vegetables will be cheaper, with more than 1000 everyday products to follow next year. Peter Diethelm, Head of Migros Supermarkt AG, explains in an interview what he plans to do.
Many people in Switzerland are struggling with the rising cost of living. Health insurance premiums, energy prices, housing costs and many other items are squeezing people's budgets and are at the top of the official “Worry barometer”. Migros has always been about offering the best value for money. We are constantly working to improve prices and service for our customers. But we are now going one step further.
As of today, 28 October, Migros has started to reduce many prices in the fruit and vegetable section to discounter levels. Over 60 products are currently available at a low price, depending on the size of the store. Later there will be over 100. This will be followed by new low prices for many meat, fish and convenience items. We have the majority of everyday products in our sights. In the coming year, we will be offering well over 1000 products at a low price.
What really counts for every customer is the effect on their personal shopping basket. That's why we are discounting everyday produce such as cucumbers, lettuce, tomatoes, carrots, potatoes, apples, pears, lemons and much more. Every price category for fruit and vegetables is affected, from M-Budget to organic produce. Our aim is clear: everyone should benefit and there should no longer be any reason to go to discounters, especially as we not only offer competitive prices, but also a much wider range of products and services, and have many more sales outlets.
There are major seasonal differences in fruit and vegetables, which means that the entire range is not always available at the same time. Mandarin oranges, for example, are only available in winter, nectarines in summer. Over the course of the coming year, we will be able to offer additional fresh products at reduced prices.
Products with prices at discounter level will be clearly labelled “low price” in the stores. From the end of October, we will be telling customers about current price reductions on an ongoing basis through various channels, for example in the Migros magazine, on migros.ch and in the app.
If the discounter permanently reduces its price for an equivalent “low price” Migros product, we will also reduce our price. We'll refrain from matching down to the last centime, however: so, for example, we'll charge CHF 2 for a CHF 1.99 equivalent, for the sake of simplicity. Thanks to the Cumulus card and the Cumulus vouchers we issue, the final price will actually be lower than CHF 1.99.
No! Migros is and will remain a comprehensive full-range provider with many unique own brands, with by far the largest regional range under the “From the region. For the region.” label and a large selection of fresh produce. In addition, highly trained and motivated employees serve our customers in many stores at our meat, fish and cheese counters. In our in-house bakeries, experts produce fresh bread with passion every day. In fact, with M-Budget we have long had a comprehensive range of low-price products. We are now supplementing this with products in the fruit and vegetable section. So at Migros you will always have the widest choice and also find many items at a low price.
Migros' basic mission has always been to offer the best products at the best prices – regardless of what its competitors are doing. This is what we continue to stand for unreservedly.
No, the price reductions are made possible by efficiency gains within Migros. As I explained when Migros Supermarkt AG launched at the beginning of the year, this is one of the criteria by which we measure our work: Migros must make its supermarket business leaner, and this must be tangible for the customer in the form of better services and lower prices. Irrespective of these price reductions, we always take the same approach to price negotiations – tough but fair.
The price reductions for fruit and vegetables have begun, and other product ranges will follow this year. But we are also planning to noticeably improve the shopping experience for our customers in the medium and long term. By 2030, we will therefore invest an additional CHF 500 million in lower prices and CHF 2 billion in our branch network .
We are opening 140 new stores throughout Switzerland, which will directly benefit 200,000 households: Migros will become their nearest supermarket. Many of these new stores will be smaller in terms of space but will still offer a wide, fresh and regional range of products.
Yes, we will also modernise 350 existing Migros stores throughout Switzerland by 2030 and bring them up to date. Our customers can expect an attractive shopping experience – with the best value for money.
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