Migros posts record results

Profit at Switzerland’s largest retailer Migros rose by 20 per cent to SFr846 million ($797 million) in 2009 - the best in the company’s 85-year history.

“Despite the economic crisis and depressed consumer mood, Migros has developed in a good way in the business year 2009 and strengthened its leading position in the Swiss market,” Migros said in a statement.

The operating result jumped by 3.6 per cent on 2008, which the company attributed to a massive increase in productivity.

But turnover sank by 3.1 per cent to SFr24.95 billion for the retail giant, which also owns fueling stations, travel agencies and banks on top of the more than 500 grocery stores scattered throughout the country.

A decrease in prices for crude oil and various product lines contributed to the slump, as well as sagging business in the company’s travel division, Migros said.

Overall Migros has a 20.4 per cent share of the market, a small drop on 2008
(20.5%).

Experts say that the market leader is losing ground to its big rival Coop, which last year saw a progression in its sales and market share.

The 2009 figures come shortly after Migros announced that it was raising its employees’ retirement age to 64 years old from 63 to help boost its pension fund.

swissinfo.ch and agencies