Migros’ grocery online shop Le Shop has started to roll out its PickMup click & collect offering. This means that the Swiss market leader will end its pilot of two collection points and shut them down entirely.
The new plan is to operate 80 pick-up points for goods ordered via Le Shop by the end of the month and 100 by early summer. Most PickMup facilities are in Migros supermarkets or Migrolino minimarkets.
More than 90% of Migros’ sales is generated in its home country of Switzerland. In this market the company leads the retail channel, operating an extensive variety of banners (ranging from grocery and apparel to furniture and very niche e-bike stores). It also runs a broad segment of additional businesses such as manufacturing, services such as banking and travel agencies, petrol stations and restaurants. Despite all this, it has become challenging for the jack of all trades to identify areas of untapped future growth potential.
The launch of 100 click & collect points sounds rash, as the small-scale test with only two facilities might not be enough to explore a country’s general acceptance of the service. However, Migros simply had to tap into the channel as soon as possible: Coop has already announced plans to do so. The arch rival intends to add pick-up points to half of its stores by the end of May. For Coop, it has also been tough to push future sales growth, as the market’s number two has a mixed banner network and size similar to Migros.
As of 2018, Migros will get a new CEO: Fabrice Zumbrunnen, who is understood to have already started building up possible sales growth accelerators like Migros’ health centres and the integration of health-related services into the company’s existing portfolio. The better integration of online on offline can also be found on Zumbrunnens To-Do list. And with supermarkets and superstores being Migros’ strongest arm in the retail segment, it comes as no surprise that the company is particularly looking for a way to push grocery retail online - preferably in the most profitable way. In the current retail environment, the combination of low cost and e-commerce is called click & collect.