Sustainability at the heart of Switzerland-based Migros

Archived article dated Tuesday June 10th 2008

Switzerland-based grocery operator Migros is unusual in having a vertically-integrated model and for its long-standing focus on sustainability that has been a key tenet of its business for many years.

Speaking at the IGD Global Retailing conference in London Daniel Furrer, head of the marketing business unit for non-food at Migros - that operates like a co-operative which is owned by its two million members, stated: “As Migros does not have to give profits to shareholders the owners get a sustainable business.”

As well as being pioneers with its code of conduct for suppliers that it first produced in the 1990s Migros has also for many years produced a sustainability report. And unlike other food companies it first looked at the effects of climate change around 30 years ago which led to it reducing its CO2 emissions by 57 per cent in the 1990s.

Its commitment to ethical trading continues today and earlier this year it started work on developing a CO2 emissions standard for both Migros' own label goods and other suppliers' products that will enable shoppers to compare similar lines from different producers.

Own label plays a big part in the Migros business as 90 per cent of the products it sells are made in its own factories. These were originally set up as a solution to the problem the company encountered with suppliers who did not agree with its aggressive pricing policies when it first started trading in the 1920s in Zurich.

Over the years Furrer says the company, whose stores encompass hypermarkets, supermarkets and convenience stores, has developed ranges for all types of shoppers and its 589 outlets now service people looking for deluxe, premium, medium and basic products.

Its vertically-integrated model has enabled it to more easily develop lines that fit with its sustainability stance. Examples are healthy ranges such as Actilife and Lèger as well as an 'Engagement' umbrella brand that is used on product types including organic, diversity, sustainable fish, Fairtrade, textiles and organic cotton.

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