Migros decides on realignment for Globus

The Federation of Migros Cooperatives (MGB) wants to realign its Globus, Men's Globus and Schild fashion formats. From spring 2018, the three concepts will be united under the Globus umbrella brand.

The Globus department store in Zurich (Photo: Migros)

The realignment is intended to strengthen Globus' competitive position in the highly competitive apparel market, Migros writes in a media release. In recent years, the textile market in Switzerland has shrunk from eleven to 8.5 billion CHF - a trend from which the brands have not been able to decouple. While Globus and Herren-Globus have managed to gain market share due to their focus on premium brands, Schild has come under increasing pressure with its offerings in the mid-price segment. The MGB cites the strong Swiss franc, the associated shopping tourism, but also international stationary competitors and new online providers as the main reasons.

Branch network under review

Migros now wants to combine all products of the three brands in a single online store, and at the same time the formats and ranges of the department stores will be revised. In a further step, the potential of the 84 locations will be evaluated and the store network adapted accordingly within the next five years.

According to Migros, not only closures are conceivable, but also new openings or conversions to a more suitable format. These are to be stores with a complete department store range or specialist stores with partial ranges. In some stores, the expansion of the gastronomic offering is also under discussion. Including outlets and brand stores, Globus operates 15 stores, Herren-Globus 23 and Schild 45.

Commitment to the "Future of the Department Store

"With the strengthening of the Globus premium brand, the investments in digital transformation and the renewal of the store network, we are committed both to the future of the department store and to the market with upscale men's and women's fashion," says Beat Zahnd, Chairman of the Board of Directors of Magazine zum Globus AG and Head of the Retail Department at MGB. Migros anticipates the changing consumer behavior and is building with Globus "a new shopping world in which offline and online are inextricably linked".

Globus CEO Thomas Herbert adds: "Of course, it is not easy for me to transfer the traditional Schild brand to Globus. However, the development of the last few years and market analyses have shown that the one-brand strategy is the right thing for the magazines to Globus AG.

 

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