Migros: M-Budget products less in demand in 2009
On Tuesday, Migros published its financial results for the 2009 fiscal year. These figures reveal a shift in demand regarding the product lineup: Sales of M-Budget products declined by 3 percent in 2009 compared to the previous year. In contrast, sales of the «M-Classic,» «Annas Best,» and «I am» lines, as well as Heidi products, increased.
In total, the Migros Group earned CHF 748 million with the green-white-orange packaged cheap products, as Head of Marketing Oskar Sager explained to the media in Zurich on Tuesday. The decline in the cheapest items is probably due to the increasing influence of the German discounters Aldi and Lidl in Switzerland, among other things. However, Sager made it clear that the discounters are not solely responsible for the decline in sales of the previously successful line. The price reductions of an average of five percent on one third of the M-Budget range are also indirectly attributable to Aldi and Lidl. At the same time, however, the range has been reduced. According to Sager, there are only a few M-Budget products left, particularly in home electronics and interior design.
By contrast, sales of other Migros lines performed better last year than the low-cost line. For example, "M-Classic" with typical own products developed well, said the Head of Marketing. Anna's Best", the brand for fresh convenience products, also recorded high sales growth. Its sales increased by 16 percent. Eight percent more Heidi products from the mountain region were sold. Sales of the "I am" body care line multiplied.
By contrast, sales of other Migros lines performed better last year than the low-cost line. For example, "M-Classic" with typical own products developed well, said the Head of Marketing. Anna's Best", the brand for fresh convenience products, also recorded high sales growth. Its sales increased by 16 percent. Eight percent more Heidi products from the mountain region were sold. Sales of the "I am" body care line multiplied.
