Migros

Introduction

When you think of everyday retail in Switzerland, few names are as iconic and ingrained in national identity as Migros. Founded in 1925, Migros has grown from a humble “mobile shop on wheels” into the largest retailer in Switzerland, with operations spanning supermarkets, online retail, financial services, health services, and non-food retail. Its growth mirrors transformations in consumer behaviour, competitive retail markets, and fundamental shifts in how companies communicate social purpose and sustainability – all while remaining deeply embedded in Swiss cultural and economic life.

Founding and Early Growth: The Cooperative Ethos

Migros was founded in 1925 by visionary Swiss entrepreneur Gottlieb Duttweiler, who pioneered a cooperative retail model with a simple but radical mission: to offer affordable, high-quality food products directly to households. At a time when food prices were high and distribution systems inefficient, Duttweiler’s solution was revolutionary in Switzerland – he drove a fleet of orange-branded vehicles stocked with goods, selling directly to consumers.

The name Migros itself, derived from the term mi for “me” and gros for “large,” symbolised a departure from traditional retail and an emphasis on collective benefit over shareholder profit. The cooperative structure – where customers were also members – embedded democratic governance at the company’s core. This approach allowed Migros to expand not just in urban centres but throughout rural Switzerland, giving it broad geographical reach and social legitimacy that few competitors could match.

During the 20th century, Migros expanded its operations beyond groceries into a wide range of sectors, including electrical appliances, home goods, travel, lifestyle services, and finance. For decades, such diversification helped Migros become a retail giant – often called the “orange giant” in Switzerland because of its strong brand presence and orange-painted store fronts.

Structure and Business Model

Migros is not a single corporation in the usual sense. Instead, it is composed of a federation of regional cooperatives — independent entities grouped under the Migros-Genossenschafts-Bund (MGB). Each cooperative serves a specific geographic area and is accountable to its members. This federated organisation allows local responsiveness while still benefiting from collective purchasing power, shared logistics, and a unified brand identity.

Today, the Migros Group operates across four core strategic business segments:

Food Retail — the traditional supermarket operations including Migros stores, Denner discount outlets, Migrolino convenience stores, and Migros Online.
Non-Food Retail — including electronics and lifestyle retail under brands like Digitec Galaxus.
Healthcare Services — encompassing medical clinics and allied services, notably through the Medbase Group.
Financial Services — provided primarily through Migros Bank.

This segmentation reflects a multi-faceted approach to retail services — from groceries and everyday items to healthcare and financial products — positioning Migros as a lifestyle ecosystem for consumers rather than just a supermarket chain.

Recent Transformation — From Diversification Back to Core

For much of the late 20th century and the early 21st, Migros’s sprawling diversification strategy was a defining feature. However, by the early 2020s, external pressures — including competition, changing consumer priorities, and the rise of digital commerce — prompted the company to re-evaluate its portfolio.

Strategic Refocusing

Starting in 2024, Migros initiated a significant portfolio rationalisation, divesting from businesses that were either structurally loss-making or not aligned with its future vision. High-profile exits included:

Mibelle Group, the beauty and personal care producer, sold to external buyers in March 2025.
Hotelplan Group and lifestyle retail brands like Micasa, SportX, and OBI were also divested as part of a broader streamlining effort.

This shift signified a deliberate departure from managing a sprawling retail empire to focus on areas with sustainable competitive advantage and customer value — namely, food retail, digital commerce, healthcare, and financial services.

Core Business Reinforcement

Despite global trends where supermarkets struggle with slim margins, Migros undertook a bold commitment to price competition in the Swiss market. In 2025, the group invested heavily — approximately CHF 500 million — in permanent price reductions to benefit customers and cement its relevance in everyday life.

Complementing this price strategy, Migros also launched a CHF 2 billion investment programme focused on expanding store footprints and modernising existing outlets. This included opening 140 new stores and upgrading around 350 existing locations to enhance freshness, regional product assortments, and overall shopping experience.

2025: A Milestone — The Centenary Year

The year 2025 was momentous for Migros — not just commercially but symbolically. It marked the 100th anniversary of the company’s founding.

Celebrations and Brand Renewal

Migros commemorated its centenary with a nationwide campaign under the theme “Merci”, designed to thank customers and the Swiss population for a century of loyalty. Activities included:

A Switzerland-wide “Merci Tour” featuring performances and community events.
The revival of the historic Migros sales bus, echoing the company’s origins in mobile retail.
Birthday celebrations in all Migros stores across Switzerland.
Special promotions and employee gatherings celebrating the milestone.

These initiatives underlined Migros’s cultural significance — not merely as a retailer, but as a societal institution woven into everyday Swiss life.

2025 Financial Results — Stability Amid Change

Financially, 2025 was a nuanced year for Migros. According to official figures:

Total group sales were CHF 31.9 billion — a slight decline (-1.9%) compared with 2024 when including businesses sold during the year.
Adjusted for the divestments, the continuing operations showed currency-adjusted growth of 1.1%, signifying underlying stability and resilience in core operations.

Of particular note:

The Food Retail business remained essentially stable with CHF 24.3 billion in reported revenue, though performance varied across segments (e.g., supermarket sales slightly impacted by renovations and price campaigns).
Non-Food Retail, powered by growth in Digitec Galaxus, delivered notable expansion (+13.6%).
Healthcare services also showed healthy growth (+4.5%), driven in part by the Medbase Group.
Financial Services results — particularly from Migros Bank — were anticipated and scheduled for publication in early 2026.

Taken together, these figures convey a transitioning organisation that has managed to preserve its economic footing despite broad structural changes and intense price competition.

Vision 2035: Charting the Next Decade

With its centenary behind it, Migros has turned decisively towards the future with Vision 2035, approved by the Federation of Migros Cooperatives in November 2025.

Guiding Principle: “A Switzerland Providing High Quality of Life for Everyone”

Vision 2035 is anchored by a core principle that reflects Migros’s legacy — but also its ambition to shape social outcomes beyond retail profitability. The vision outlines three strategic elements:

First Choice in Everyday Life — reinforcing Migros’s role as the retailer and service provider Swiss residents depend on daily.
Community and Engagement — deepening customer benefits, rethinking cooperative member roles, and enhancing community value delivery.
Organisational Development — refining internal operations to support agility, innovation, and impact across all strategic business areas.

This vision reflects a broader conception of corporate purpose, where Migros seeks to influence national quality of life – including through investments in education, culture, sustainability, and public well-being – while continuing to offer core services across food, health, finance, and digital commerce.

Challenges and Criticisms

No large organisation is without contention, and Migros has faced several challenges and criticisms in recent years.

Strategic Exit and Store Closures

The closure of non-core segments, like the Do it + Garden hardware chain and the exit from certain franchise agreements (e.g., Alnatura organic supermarkets), faced mixed reactions. While these moves were strategic in focusing the business, they resulted in job losses and controversy in communities where such stores were local fixtures.

Regional Cooperative Results

Different regional cooperatives within the federation have performed unevenly. For example, Migros Zurich reported significant losses tied to the expansion into Germany and other strategic experiments – prompting internal reflection and restructuring.

Consumer Experience and Pricing Debates

Public discourse, including on social platforms and consumer forums, highlights varied customer experiences – from concerns about shelf availability and product freshness to broader debates on pricing, discounted goods, and assortment choices. While such anecdotes don’t capture Migros’s full performance, they underscore consumer expectations in a competitive market environment.

Comparisons and Global Context

It’s worth noting that “Migros” is also the name of a separate Turkish retail chain, Migros Ticaret, which operates hundreds of stores in Turkey under similar retail formats but is entirely distinct from the Swiss cooperative. This Turkish entity has its own market dynamics, revenue streams, and competitive landscape, highlighting how a shared name can represent distinct businesses in different markets.