Migros is undergoing a significant transformation by divesting most of its specialist stores to focus on its supermarket business. The decision to sell five of its six specialist stores, including Melectronics, SportX, Micasa, Bike World, and Do it + Garden, indicates a shift towards online retail and a focus on its core business. The announcement has surprised many consumers who value the personalized service provided by specialist staff in physical stores, but changing consumer behavior towards online shopping has made it necessary for Migros to adapt.
The rise of e-commerce in Switzerland, with Swiss people spending billions online, has prompted Migros to invest more in its online retail platform, Digitec Galaxus. By divesting its physical stores, Migros aims to streamline its operations and focus on its supermarket business, while also reducing internal costs and improving profitability. The restructuring plan includes job cuts and a reorganization of its operations to align with its new focus on supplying its supermarkets.
Despite the visible changes in its subsidiaries and the sale of Hotelplan, Migros is strategically realigning its business to become more competitive in the market. The newly founded Supermarkt AG is expected to drive growth and innovation in the supermarket business, with a new store concept set to be implemented nationwide. By prioritizing its core business and divesting non-core assets, Migros aims to secure its position in the market and adapt to changing consumer preferences in the digital age.
In conclusion, Migros’ decision to divest from most of its specialist stores marks a significant shift towards online retailing as it focuses on strengthening their core business as supermarkets while reducing costs and increasing profitability. This strategic move aligns with changing consumer preferences towards e-commerce and will enable them to remain competitive in today’s market.
