Migros aims for efficiency gains with merger of cooperatives

Migros aims to become more efficient through a major merger Keystone-SDA

Migros is set to undergo a major reorganisation. The ten regional cooperatives and the Migros Cooperative Federation (MGB) are to merge to form a single group cooperative. In doing so, the retail group aims to simplify its complex management structures.

The boards of all ten regional cooperatives and the MGB have unanimously approved the proposal, Migros announced on Monday. The 2.3 million cooperative members are due to make a final decision on the matter in a ballot in mid-2027. A two-thirds majority is required in each of the ten regional co-operatives for this to go ahead.

The new group cooperative is to act as the umbrella organisation for the seven business units, which will continue to operate independently. In addition to Migros Supermarket, these include discount food retailer Denner, online retailer Digitec Galaxus and Migros Bank, among others. In future, the supermarket business is to be managed from a single source across Switzerland.

Six regional councils planned

The existing regional management structures are to be largely phased out. Instead, six regional councils are planned, which will represent the regions’ interests and elect delegates to the national delegates’ assembly. According to Migros, the regional roots and the cooperative right to have a say are to be preserved.

According to a report in the SonntagsZeitung newspaper, the reorganisation could result in the loss of around 3,000 jobs. The potential annual savings are estimated at CHF300-400 million ($363-484 million). In its statement, Migros did not specify any concrete savings targets or the number of jobs affected.

Instead, it promises that there will be no redundancies due to organisational changes in the regional co-operatives until at least mid-2028. The changes will primarily affect administration and management. Where possible, alternative roles within the group will be found for affected staff.

CEOs to step down

The planned merger will also bring about a change in leadership. Migros CEO Mario Irminger and Peter Diethelm, CEO of Migros Supermarkt AG, intend to step down from their roles by the time of the ballot in mid-2027. Both will then be 62 years old.

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Migros stated that they had championed the new structure with complete conviction. Their successors are expected to be able to lead the new organisation from the outset, as it takes several years to establish. The search for their replacements has already begun.

Second major restructuring

Migros has been undergoing a far-reaching restructuring since 2024. Irminger has overseen the largest restructuring in the company’s history to date. Loss-making businesses or those no longer aligned with the core business have been divested.

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With the sale of specialist retail chains and other businesses such as Melectronics, SportX, Micasa, Hotelplan and Mibelle, Migros will in future focus on the retail, financial services and healthcare sectors. The restructuring resulted in the loss of around 1,500 jobs out of a total of approximately 100,000 jobs.

For decades, the complex cooperative structure has been seen as an obstacle to faster decision-making. As early as the 1990s, an attempt to reduce the number of regional cooperatives – then 12 in all – to three failed. Its competitor, Coop, merged its regional cooperatives as far back as 2001.

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Translated from German, reviewed by an English Department journalist. 

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