Migros reported a significant increase in net profit for 2025, reaching 1.1 billion Swiss francs compared to 419 million Swiss francs the previous year. Even though, this surge in earnings is largely attributable to the sale of subsidiaries such as Mibelle, Obi and Hotelplan. The company’s performance excluding these divestitures reveals a more nuanced picture, as explained by SRF economics editor Isabel Pfaff.
Why has Migros’ profitability decreased – excluding the impact of corporate sales?
Migros continues to face challenges in its core supermarket business, which has underperformed compared to the broader retail sector. While the overall retail environment was positive last year, Migros captured a smaller share of the gains. A key factor is the company’s low-price strategy: Migros reduced prices on approximately 1,000 items – roughly one-twelfth of its assortment – to compete more effectively with discounters like Lidl and Aldi. This strategy has impacted revenue. Migros is modernizing its store network, a process that involves temporary closures and associated costs and revenue losses.
When does Migros expect to see market share gains?
Migros CEO Mario Irminger anticipates a turnaround beginning in 2028. The company’s current investments – totaling 1.5 billion Swiss francs in 2025 alone – in low prices, stores, logistics, and production are expected to yield results at that time. Migros currently operates around 720 retail locations, with plans to renovate 350 by 2030 and add 140 new stores. The group’s goal is to achieve a consistent margin of around 2.5 percent in its core business, similar to Coop.
Is the corporate restructuring at Migros now complete, and what is the company’s current focus?
According to Mario Irminger, the streamlining of Migros’ portfolio is now finished, with the sale of the Tegut retail chain in Germany marking the final step. The company will now concentrate on its four remaining business areas: the food retail sector encompassing Migros stores, Migrolino, Denner, and its own production facilities; the non-food segment through online retailer Digitec Galaxus; healthcare (Medbase, fitness centers); and financial services with Migros Bank. Irminger stated that, with the exception of the food retail business, Migros is already strong and growing in all these areas.
Has Migros reduced its workforce following the corporate restructuring?
Yes. As of the end of 2025, Migros employed approximately 92,000 people – around 7,000 fewer than the previous year. The company announced in early 2024 that restructuring processes would result in the loss of around 1,500 positions. The actual reduction has been significantly larger – largely because the group has shrunk by more than 20 subsidiaries. Many employees of these former subsidiaries were not laid off, with numerous individuals continuing their employment under the new owners.
