Although the retail trade seemed to be slowing down, it still represents a large part of Coop’s revenue, with 17.7 billion Swiss francs [17.7 billion USD]. For the first time, Coop exceeded the mark of 30 billion Swiss francs [30 billion USD] in revenue, which represents a 5% increase. “A growth of 0% was expected for the retail trade in Switzerland. We increased by 1.9% in this sector. It is quite a good progression,” announced Joos Suter, CEO of Coop.
His competitor, Migros, also reported some good figures for 2018. The leader in retail trade experienced a progression of 1.9% in the sector in Switzerland and abroad, at 23.7 billion Swiss francs [23.7 billion USD].
The Swiss are willing to pay more for the products
For the past 10 years, the two retail giants’ revenue have increased steadily. An unprecedented situation on the Swiss market, which also includes cheaper retail stores. The Coop and Migros group are not known for their low prices. On the contrary, they are reputed for their premium products. So the Swiss seem to still be willing to pay more to go to those two supermarkets.
The Swiss are indeed very fond of Coop and Migros. According to a ranking published by the market research institute GfK, the brands which the Swiss have felt the most attached to for several years, are the ones from Migros and Coop.
For Nicolas Inglard, director of Imadeo, a company for the study of commerce, the conservative nature of the Swiss can explain this attachment. “We like continuity. On the other hand, we do not like preservatives in our food. We go for organic products, quality products, and in Switzerland, we are willing to pay the price to get them.”
Competition is growing
The Coop and Migros brands are present in all segments of life and all neighborhoods of Switzerland, with a very fine network. For the non-food products, e-commerce continues to play an important role. And for the food sector, more and more discount supermarkets like Aldi and Lidl are emerging in the country.
Source: www.rts.ch
