Migros puts question mark behind Galaxus in Germany
Published: Tuesday, Mar 26th 2024, 12:31
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The expansion of the online subsidiary Digitec Galaxus in Germany is currently not making Migros management happy due to the high losses. How to proceed with this is currently the subject of lively discussion, said Migros CEO Mario Irminger at the retail giant's annual media conference in Zurich on Tuesday.
In terms of sales, Digitec Galaxus has grown by almost 12 percent, and the Migros subsidiary achieved a third of this growth in our northern neighboring country. However, the online retail business in Germany is heavily loss-making. "Germany is a very competitive market and there are various competitors there, including global ones, who have a dominant position," said Irminger.
At the moment, a "substantial" amount is still being invested to gain a foothold in Germany. According to Irminger, it is necessary to invest heavily in the run-up to this. In Switzerland, too, the company had initially invested "years to become profitable", he said. And now Digitec Galaxus is making an operating profit in this country.
Nevertheless, the future of Galaxus Germany is not exactly on a solid footing at the moment: "We are currently discussing to what extent we will continue to be involved there," said Irminger.
In an interview with the news agency, CFO Isabelle Zimmermann did not want to put a figure on how high the loss was at the German subsidiary last year: "But Galaxus in Germany has always exceeded the targets from the 2021 business plan. The development was always better than planned."
©Keystone/SDA
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