Migros, Switzerland's largest retailer, has announced pivotal changes affecting its furniture and do-it-yourself (DIY) ventures. The company revealed it has sold its Micasa furniture division through a management buyout and will close the majority of its Do it + Garden stores due to the inability to find viable buyers.
Over the past 13 months, employees at both Micasa and Do it + Garden have awaited clarity on their futures as part of Migros' substantial restructuring efforts. The announcement came just weeks before the company's annual financial conference, succinctly ending speculation among staff and customers alike.
The Micasa furniture chain will continue operations under the leadership of Philipp Agustoni, its current CEO, and Manuel Landolt, COO of Migros Fachmarkt AG. The two leaders plan to transition all 30 Micasa stores under the new name, Micasa AG, starting September 1, 2025. Agustoni expressed optimism, stating, "Together with Rethink, we start full of energy on a new chapter for Micasa," highlighting aspirations to shape the future of living in Switzerland.
Conversely, the outlook for Do it + Garden stores appears grim. Of the total 45 locations, 31 are set to close by the end of June 2025. Despite extensive efforts, Migros disclosed, "Unfortunately, no buyer could be found for Do it + Garden, even after multiple discussions. None saw the potential for the business to succeed nationally." Only the Do it + Garden stores located in Carouge GE and Nyon VD will transition to the German company OBI, continuing operations there.
Despite announcing the closures, Migros is committed to supporting its employees. Approximately 466 workers from Do it + Garden and 159 from Migros Fachmarkt AG, the parent company affected by these restructuring measures, could face job losses. The retailer mentioned it would seek the best possible solutions for affected employees, including the application of their social plan if necessary. Notably, all trainees at Do it + Garden will have the opportunity to complete their training within or outside Migros.
Another significant aspect of this restructure is the discontinuation of the partnership with Alnatura, the German organic supermarket chain. Since 2012, the Migros Zürich cooperative operated 25 Alnatura stores under franchise agreement. Following extensive analysis, it was determined Migros Zurich would no longer serve as the effective operator for these stores. Patrik Pörtig, Managing Director at Migros Zürich, articulated this decision, noting, "The withdrawal from this business model is the result of our consistent focus on the Migros supermarket and the corresponding allocation of resources."
Alnatura will provide more details about the fate of their stores later this year. The uncertainty hangs over the employees and customers, but for now, the stores remain operational along with the extensive selection of Alnatura products available at Migros supermarkets.
The repercussions of these changes stretch beyond just the immediate layoffs. The restructuring reflects Migros’ strategic pivot back to its core focus on supermarkets and grocery items, as it has faced fierce competition from both domestic rivals and international retailers. Recent sales have also seen Migros divesting several other brands, including electronics and sports retailers, which shows the company's shift toward streamlining its operations.
The large-scale restructuring at Migros marks one of the most significant changes for the company since its establishment. Analysts speculate such decisions signal increased competition resilience, but they also raise concerns around employee welfare as jobs are lost amid this transformative period. brand label management, and successful growth strategies have played significant roles, with Micasa expected to retain its identity but operate independently, allowing for specialized focus.
Moving forward, the fate of Migros' remaining assets, including the cosmetics and hygiene division Mibelle, remain uncertain. While some sales have concluded, the extent of future divestments will become clearer as the company may prioritize financial stability amid changing market conditions.
Despite the challenges imposed by these changes, both customers and employees are grappling with a new reality at Migros—a retailer known for its range and customer commitment. Agustoni’s commitment to continuing Micasa’s services and product warranties brings some reassurance, yet the looming closures and transitions spark discussion on the future of retail practices among larger chains.