30 billion mark cracked: record sales for Migros Group
Migros Group generated sales of more than CHF 30 billion in 2022. The main drivers were the travel and leisure business as well as gastronomy, which had suffered in the pandemic.
The 2022 financial year of Migros Group was characterized by a normalization of economic development. Following the lifting of the Covid restrictions, the special effects of previous years declined - and with them the pandemic-related high sales of food and household goods. This was felt above all by the stationary retail trade. Online business, which had been characterized by high growth rates in previous years, continued to perform very well. In addition, relaxed restrictions and a high level of pent-up demand among customers ensured a resurgence in the travel and leisure business, as well as in the food service sector. Migros Group again increased sales and exceeded the CHF 30 billion mark for the first time in the company's history.
Group sales increased by 3.9 percent to CHF 30.069 billion. Retail sales in Switzerland remained stable year-on-year at CHF 23.115 billion (-0.2 percent). Total online sales grew by 15.3 percent to CHF 3.737 billion, with the Migros Online supermarket falling slightly short of the previous year's strong growth (-0.7 percent) and closing with sales of CHF 328 million. Digitec Galaxus, Switzerland's largest online department store, recorded growth of 7.4 percent.
Cooperative retail trade
Net sales of the ten regional Migros cooperatives, including subsidiaries, amounted to CHF 15.901 billion, of which CHF 1.384 billion was attributable to foreign business. As expected, cooperative sales fell short of the previous year's result (-2.0 percent . The reason for the decline was a normalization of demand following the lifting of the Covid measures. The supermarkets and hypermarkets, including Migros Online, generated domestic sales of CHF 12.276 billion, which was below the previous year's result (-3.1 percent). Compared to the previous year, customer frequency in the supermarkets and hypermarkets increased (+5.5 percent), but the basket of goods per purchase decreased. The specialist stores Micasa, SportXX, Bike World, Do it + Garden, Melectronics and OBI felt the subdued consumer demand in 2022. After the momentum of the Covid years, sales declined by 6.7 percent to CHF 1.612 billion. Gastronomy, which had suffered from pandemic-related closures and restrictions in previous years, increased its sales by +46.5 percent to CHF 577 million.
Department of Commerce
The Retail division increased its sales by 4.9 percent to CHF 8.582 billion. Following growth in the previous two years, several retail companies were able to improve sales again in 2022. For example, sales at online retailer Digitec Galaxus rose by 7.4 percent to CHF 2.206 billion, driven by continued encouraging growth in Switzerland and high growth rates in Germany (+78.6 percent). The discounter Denner was able to expand its market share in a declining overall market, but remained below the previous year's level with sales of CHF 3.686 billion (-3.2 percent). Convenience provider Migrolino continued on its growth path and achieved sales of CHF 784 million (+5.1 percent). Migrol increased sales by 23.7 percent to CHF 1.794 billion due to the sharp rise in oil prices.
With its industrial operations, Migros is one of the world's largest producers of private labels, while also supplying numerous third-party customers in Switzerland and abroad. In 2022, it recorded a slight overall increase to CHF 5.786 billion (+0.7 percent). The main driver of growth was the strong development abroad.
The healthcare business area - Medbase Group, Fitness (Movemi), Bestsmile and Misenso - increased its sales by 18.9 percent to CHF 746 million. Within this business area, Medbase Group continued the growth trend of the previous year to CHF 523 million (+6.7 percent). In addition to organic growth in all business areas, acquisitions also contributed to this development. The newly established fitness company Movemi, with its Migros fitness formats, achieved growth of 23.2 percent.
Driven by relaxed travel restrictions and a very strong pent-up demand, the propensity to travel increased significantly again from spring onwards. The two brands Hotelplan and Migros Ferien recorded more bookings overall in July and August than in the same period of 2019, while the vacation apartment broker Interhome closed 2022 with the best sales in its 57-year existence. Overall, the Hotelplan Group generated net sales of CHF 1.435 billion (+122.5 percent). The travel group will announce its detailed sales figures on January 26, 2023.