Migros plans restructure to merge with its ten regional co-operatives

The move, in response to fierce market competition, aims to make savings by streamlining management and administrative processes

Swiss retail co-op Migros has announced plans to streamline its operations by merging its regional co-operatives into a single structure.

Currently, the retailer is structured as the central Federation of Migros Cooperatives, alongside 10 independent regional co-ops. The plan, backed by the co-op boards, will see Migros “turning 11 into one” to establish a single group co-operative.

“This streamlined organisational structure aims to remove parallel structures and strengthen Migros over the long term,” said Migros on its website. “This is a policy decision: nothing will change until the ballot vote by cooperative members in mid-2027.”

Migros said the plans will bring “one of the biggest changes in its 101-year history”, It hopes to “simplify lines of responsibility, reduce overlapping structures and accelerate decision-making”.

The move comes in response to fierce competition in the Swiss retail sector, added the co-op. It said the savings would impact admin and management staff rather than store workers as back office functions are simplified.

‘“Removing Migros’ parallel structures will enable it to provide even better and more attractively priced products,” it said.  “Giving Migros a uniform organisational structure will provide benefits for its 2.3 million co-operative members, allowing them to share in the company’s financial success to an even greater extent in future.

“A successful Migros will provide opportunities for its 80,000-strong workforce in Switzerland, safeguarding jobs and creating new positions.”

It also hopes there will be “greater leeway for new and modernised stores in the regions”.

Ursula Nold, president of the Federation of Migros Cooperatives, said: “Together with the regional co-operatives, we have set Migros on a new course for the future. This unanimous decision shows that we, as a community, are capable of taking firm action and tackling challenges together.

“Our aim is clear: we want to make Migros more agile, attractive and efficient again – for the benefit of all our stakeholders and based on the solid foundation of our co-operative values.” 

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Under the new structure, Migros said members will hold a stake in the entire Migros Group, rather than just in a regional co-operative.

The aim is for six regional councils, with around 300 members in total, “to facilitate co-operative co-determination in future”, added Migros. The plan is for one council each representing French-speaking and Italian-speaking Switzerland. These regional councils will succeed the 10 co-operative councils currently in place, which have about 500 members altogether.

The assembly of delegates will be elected from the regional councils.

Migros claims its local stores, the staff and product range – including all products in the “Aus der Region. Für die Region.” range – will remain in place.

Under the umbrella of the new group co-operative, Migros said its seven business units will operate with a large degree of independence: Migros Supermarket, Migros Industrie, Denner, Migrol and Migrolino, Digitec Galaxus, Medbase and Migros Bank.

“The group co-operative will define the overall strategy, allocate funds and monitor risks,” the co-op added. “The individual companies will remain responsible for their day-to-day operations.”

Migros said the plans will not affect store workers – but there will be implications for management and administrative structures “as similar tasks will be streamlined“.

According to a report in Swiss Sunday newspaper Sonntagszeitung, the restructure could result in the loss of approximately 3,000 jobs with savings estimated at 300 to 400 million Swiss francs a year.

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