Switzerland’s Retail Revolution: How Action and Müller Are Forcing Migros to Rethink Everything
A 9V battery. It seems a trivial item, but the price difference – CHF 1.49 at Action versus CHF 4.95 at Migros – perfectly encapsulates the seismic shift underway in Swiss retail. Customers are already lining up before opening hours, not for luxury goods, but for deeply discounted everyday items. This isn’t just about saving a few francs; it’s a fundamental challenge to the decades-long dominance of Switzerland’s retail giants, and a signal of a potentially permanent change in consumer behavior.
The Discounter Invasion: Action and Müller Gain Ground
For years, Migros and Coop have enjoyed a comfortable position in the Swiss market, largely unchallenged. Their attempts to compete with Aldi and Lidl through initiatives like M-Budget have had limited success, growing sales by only 2.8% between 2020 and 2024, lagging behind the country’s 4.8% population growth. Now, the arrival of Dutch discounter Action and German drugstore chain Müller is injecting a new level of price competition. Action, with its initial stores in Bachenbülach and Winterthur, plans to open 100 more locations in Germany, demonstrating its aggressive expansion strategy. Müller, meanwhile, is quietly undercutting prices on a wide range of goods, from toiletries to household items.
Beyond Price: The Appeal of Variety and Value
The price discrepancies are stark. Scissors costing CHF 5.95 at Migros are available for just CHF 1.07 at Action. Tampons, a necessity for many, are significantly cheaper at Müller. But it’s not solely about the lowest price. Action and Müller offer a broader, more diverse range of products than traditional Swiss supermarkets, appealing to a wider demographic. While Migros still holds sway with its established customer base – “the old ones,” as the source material bluntly puts it, and those with specific lifestyle preferences – a growing segment of the population is actively seeking better value.
The M-Outlet Strategy: A Defensive Maneuver?
Migros’ response has been to expand its M-Outlet stores, growing from just one location in 2008 to 29 today. However, the very name “Outlet” feels misleading. Many items sold in M-Outlets aren’t actually overstock from Migros branches, but rather sourced specifically for these discount locations. The claim that M-Outlets simply “round off the range” rings hollow when a significant portion of the inventory doesn’t originate from traditional Migros shelves.
The Data Doesn’t Lie: Migros is Losing the Price War
Migros’ own “K-Tip” price comparison tool reveals a troubling truth: when comparing 100 everyday items, Migros and Coop consistently charge more than Lidl and Aldi. This price difference is particularly pronounced in the non-food sector, where Migros is demonstrably overpriced compared to its foreign competitors. The assertion that “there should be no reason to go to the discounter” is demonstrably false, and the data suggests a growing number of Swiss consumers are voting with their wallets.
Future Trends: What’s Next for Swiss Retail?
The current situation isn’t a temporary blip; it’s a harbinger of significant changes to come. We can expect to see:
- Increased Price Transparency: Consumers will demand greater price transparency and actively compare prices across retailers, leveraging online tools and apps.
- Further Discounter Expansion: Action and Müller will likely continue their expansion, potentially sparking a price war that benefits consumers.
- Migros and Coop Innovation: The established players will be forced to innovate, potentially through more aggressive pricing strategies, enhanced loyalty programs, or a greater focus on private-label brands.
- A Shift in Brand Loyalty: Traditional brand loyalty will erode as consumers prioritize value and convenience.
- The Rise of Hybrid Models: We may see retailers experimenting with hybrid models that combine the convenience of a full-service supermarket with the low prices of a discounter.
The arrival of Action and Müller isn’t just about cheaper batteries and socks. It’s a wake-up call for the entire Swiss retail landscape. The era of comfortable dominance is over, and the future belongs to those who can adapt to the evolving needs and expectations of a price-conscious consumer. What strategies will Migros and Coop employ to navigate this new reality? Only time will tell, but one thing is certain: the retail revolution in Switzerland has begun.
What are your predictions for the future of Swiss retail? Share your thoughts in the comments below!
