Galaxus: Migros loses millions in Germany but keeps the faith

Galaxus Germany is a financial pit. Already in 2022, the German counterpart of the Migros subsidiary had incurred a deficit of €49 million. In 2023, losses had even risen to €61 million. And things continued "at the same pace" last year, according to information revealed Wednesday by the media outlet "Inside Paradeplatz." Added to this are significant financial commitments: €38 million are due between 2025 and 2028, and €69 million "from January 1, 2029." This includes, in particular, rents for the Hamburg offices and the new logistics sites in Neuenburg am Rhein .

Despite these significant losses, Migros, which is undergoing a restructuring that has seen many of its businesses sold , seems undeterred by its German baby. "These are ongoing expenses in the industry, necessary to develop an e-commerce business and position the brand sustainably against competitors like Zalando or Amazon," a spokesperson told our colleagues at "20 Minuten." The losses are therefore deliberately calculated and accepted: "They allow us to quickly reach critical mass, achieve economies of scale, and thus ensure long-term profitability."

Furthermore, the targets set so far for Galaxus and Galaxus Germany have consistently been met, according to the spokesperson. The German subsidiary is even said to have increased its turnover by 57% by 2023. Migros therefore continues to believe in this objective.