Migros, Switzerland's leading retailer, is undergoing significant restructuring as part of its strategy to refocus on its core supermarket operations. The cooperative announced the sale of its furniture chain, Micasa, and the closure of most Do it + Garden stores, alongside ending its franchise agreement with Alnatura, affecting 466 jobs.
The sale of Micasa will see the brand transition to two senior executives within the company. CEO Philipp Agustoni and COO Manuel Landolt are taking over Micasa, ensuring the brand remains under experienced management. This transfer is slated to take full effect by September 1, 2025, and the newly independent Micasa AG will continue to operate, supporting all current employees and apprentices.
Meanwhile, the decision to close 31 Do it + Garden locations stems from the failure to find buyers willing to continue operating the brand. Reports indicate, "No buyer could be found for Do it + Garden, unfortunately, due to extensive efforts," as stated by Migros. Only locations in Carouge GE and Nyon VD will be transferred to the German OBI Group, confirming the end of the brand for the majority of stores by late June 2025.
Alongside these closures, the cooperative is also withdrawing from its long-standing partnership with Alnatura, which it has operated since 2012. Patrik Pörtig, Managing Director of Migros Zurich, commented on this shift, noting, "After extensive analysis, we have now come to the conclusion ... Migros Zurich is no longer the best operator for the Alnatura stores."" While the 25 Alnatura stores will be closed, Migros assures customers they can still find organic products through their main stores, retaining around 2,400 organic offerings.
The restructuring is part of Migros’ broader strategy to streamline operations and concentrate resources on its supermarket segment and its two core sectors: finance with Migros Bank and healthcare through Medbase. This decision is not unexpected, as the company's recent performance has highlighted areas of low profitability.
For the remaining affected employees, the cooperative is seeking the best possible follow-up solutions and has activated its social plan to provide support. All apprentices from the closing stores will also be ensured continuity in their training within the Migros organization.
The retail environment has significantly changed, with competition intensifying, especially from electronics retailers such as Media Markt, which is set to acquire numerous Melectronics locations. The transformation within Migros reflects the need for agility and adaptability to remain competitive.
Eschewing unprofitable ventures like Hotelplan, which recorded just CHF 27 million profit on CHF 1.7 billion sales last year, indicates Migros' commitment to focusing on ventures with more substantial profit margins. Less necessary business units are now on the selling block, with Hotelplan owing Migros around CHF 100 million stemming from the pandemic period, raising financial concerns about its sustainability.
Overall, as Migros moves forward, customers can expect to see changes within its offerings but can rest assured they will still find high-quality products across its remaining stores. The company is emphasizing steady shifts to secure its market position, maintaining greater emphasis on its grocery business and reinforcing its future direction amid shifting consumer demands.