Switzerland's economic outlook has recently been shaped by shifting inflation rates and strong retail performance, providing insight for consumers and stakeholders alike. According to the Federal Statistical Office (FSO), the nation's annual inflation fell slightly to 0.6 percent in December 2024, down from 0.7 percent the previous month. This data showcases the changing dynamics of consumer prices over the year, with Swiss consumer goods 0.6% more expensive than they were the same month last year.
When dissecting the inflation figures, domestic goods emerged as substantially more costly, increasing by 1.5%, whereas imported goods reflected considerable deflation at -2.2%. This decline suggests consumers may see different pricing trends depending on the origin of the products they purchase. Notably, the consumer price index (CPI) experienced a slight dip of 0.1%, landing at 106.9 points.
Analysts attribute these changes to various factors, including lower costs for package tours abroad, medicines, and several vegetable types. An interesting aspect is the contrasting price rises observed within the para-hotel and hotel sectors. Meanwhile, the annual average inflation rate for 2024 rounded off at 1.1%, with recorded highs of 1.4% during the spring months (April and May) and lows reaching down to 0.6% observed both in October and December.
This reduction signifies significant progress as Switzerland had grappled with higher inflation rates of 2.1% and 2.8% during the preceding two years. Added to this economic narrative are the dramatic deflationary trends from 2020, which peaked at -0.7 percent.
On another front, Swiss retailer Coop reported its fiscal performance for 2024, emphasizing the boom within its supermarket segment. Total sales surged to CHF 34.9 billion (€36.99 billion), marking a 1.1% year-on-year increase. The supermarket business, encompassing Coop.ch, grew by 2.0%, with net sales reaching CHF 12.1 billion (€12.83 billion), showcasing relevant market share gains.
Private-label sales emerged as notable highlights, with the Prix Garantie brand driving strong sales figures. Coop also demonstrated dedication to returning value to customers; the retailer reduced prices on over 2,400 SKUs during the past year, taking significant steps toward maintaining consumer loyalty. Since 2019, Coop has invested approximately CHF 600 million (€636 million) on price reductions across its offerings.
Coop’s specialist store formats such as Coop City department stores reported sales of CHF 800 million (€848 million), showing growth of 2.2%. Another retail avenue, Interdiscount, indicated impressive sales growth, recording 10.2% growth adjusted for its merger with Microspot. Other brands within Coop's portfolio, including Christ Uhren & Schmuck and Coop Vitality, also saw healthy revenue uplifts.
Positively, Coop Pronto, the convenience store division, reported mixed results with slight sales growth of 0.4%, whereas Coop.ch, its online supermarket platform, displayed remarkable resilience with revenue growth of 8.7%. The cumulative online business of Coop netted CHF 5.5 billion (€5.83 billion) during the past year, underlining the importance of e-commerce adaptations.
On the wholesale side, Coop's overall production sales rose by 2.9% to reach CHF 16.9 billion (€17.91 billion), with the Transgourmet arm generating CHF 11.5 billion (€12.19 billion) reflecting growth of 1.9%. Notably, online net revenue within the wholesale sector experienced substantial growth as well, rising by 7.3%. Sustainable product offerings underscored Coop's commitment to environmentally friendly choices, with sales increasing by 2.1% as Coop makes strides toward offering the broadest selection of sustainable products across Switzerland’s retail and wholesale market.
Coop's statement noted, "Adjusted for currency effects, this increase translates to CHF 386 million or 1.1% compared to the last year." This affirmation of growth speaks volumes about Coop’s strategic direction and operational efficiency during economically challenging times.
The current economic indicators for Switzerland signal cautious optimism. Although inflation has moderated significantly, the retail sector demonstrates resilience, pivoting to meet consumer needs and preferences. Interested parties, from policymakers to consumers, will watch these trends closely as they illuminate paths to stability and growth.