Migros Sells Retail Chain M-Way to Swiss E-Mobility Group
ZURICH, Switzerland – The Swiss E-Mobility Group announced the acquisition of Migros owned M-Way AG e-bike retail chain last Friday. According to this Group, “The take-over of Swiss M-Way would result in a strong e-mobility company with competencies in both development and production as well as a nationwide retail network.”
The acquisition of M-Way is part of Swiss E-Mobility Group’s strategy to strengthen its market position in Switzerland and expand into Germany and Austria.
Recently trading giant Migros announced to divest some of its subsidiaries as it faced strong competition on its home market. The company wants to focus again on its core business of food, a chain of larger outlets and its own industrial operations. This strategy change came in response to the entry of German supermarket giants Aldi and Lidl into Switzerland.
28 outlets nationwide
M-Way was launched in 2010 by Migros’ subsidiary Migrol, a fuel and heating oil brand. With 28 outlets nationwide, M-Way is the leading e-two-wheeler IBD in Switzerland today. According to Swiss E-Mobility Group these stores will be integrated in the company’s network. Both Migros and Swiss E-Mobility Group have agreed not to disclose the selling price. M-Way employs around 100 people.
E-Mobility Group is already overlooking Colag AG, a Zurich based e-bike producer and distributor, as well as the German e-commerce trading company Eldisto GmbH, based in Nuremberg. “We intend to strengthen the group with further acquisitions, primarily in Germany and Austria, and to add services such as maintenance, repairs, financing and leasing,” stated Swiss E-Mobility Group AG Chairman of the Board of Directors, Dr. Philipp Hofstetter.
“The e-bike market has huge potential and demand is increasing constantly. We are already very successful in the B2B e-bike business and have extensive experience in development and production. Now we want to expand our end-customer business strategy and consider M-Way AG to be an ideal complement.”
Allegro, offers exclusively low-cost bicycle goods sold by suppliers outside the bicycle industry like DIY stores
M-Way’s Chairman of the Board of Directors Daniel Hofer pointed out that “Migros had already announced earlier that it was looking for a new owner for M-Way who would provide the basis for the successful further development of the company. We are convinced that Swiss E-Mobility Group AG, with its industry expertise and its strong base on German-speaking markets, provides the ideal conditions to expand M-Way and is therefore the optimal solution for all parties involved.”
In addition, Gabriele Valsecchi who is responsible for the Swiss e-bike business at Swiss E-Mobility Group AG stated that “M-Way customers will benefit from our expertise, network and well-known traditional Swiss brands such as Allegro, Cilo and Simpel. This take-over is an important step to become a leading provider of e-mobility solutions in the DACH region.” The large customer base and an extensive sales and service network would not only offer business partners attractive new opportunities but would also open up additional perspectives for employees.
Market position of Colag, Cilo and Simpel
In an initial response following the announcement of the takeover, Swiss industry experts point out that so far e-bike producer and distributor Colag has mainly been active as a partner for bigger suppliers. The Swiss E-Mobility Group has not yet managed to restore the market position of the traditional Swiss bicycle brands Cilo and Simpel. The third brand, Allegro, offers exclusively low-cost bicycle goods sold by suppliers outside the bicycle industry like DIY stores.
The sale of M-Way doesn’t mean Migros’ complete withdrawal from the e-bike and bicycle market. Migros still manages the outdoor and sports chain store giant SportXX operating 62 outlets nationwide. These shops also sell bicycle products. Next to SportXX, Migros also owns the bicycle chain store Bike World, which was launched about two years ago. Migros itself as well as Sport XX and Bike World will continue to sell bicycles, e-bikes and related bicycle products including bikewear.