LeShop.ch: focus on customer needs increases sales by 3.5 per cent

Switzerland’s biggest online supermarket has broken another record in 2016. Sales by LeShop.ch rose by 3.5 per cent to 182.1 million francs. The extended service offering is one reason for this positive trend. Delivery windows are now even more precise and extended to later hours in the evening. Sales growth of organic products has been particularly strong.
LeShop.ch increased its annual sales significantly in 2016 for the fourth year in a row: deliveries by the Migros online supermarket reached 182.1 million francs in 2016, 6.1 million francs or 3.5 per cent more than the previous year. Around 42 per cent of orders were placed through LeShop.ch mobile devices. Beat Zahnd, Head of the Commerce Department at the Migros Cooperative Federation (GB), comments: “We are banking on the fusion of online and offline. The channel itself is not the decisive factor; what counts is the opportunity for customers to choose at any time what, where and when they wish to order”.

Amongst other factors, LeShop.ch benefits from the growing number of customers who order online. Dominique Locher, CEO of LeShop.ch, sees this as no more than the beginning: “In 2020, digital natives, as they tend to be known, will make up the greater part of the population in Switzerland and hence of our customers. Market shares in retail will therefore be redistributed in the future by online growth. The decisive factor here is who is best at meeting individual customer needs from the order through to delivery. We are working on that every single day.”

The typical LeShop.ch target group – digital mothers and fathers who combine work and family – is growing. A survey conducted by the LINK Institute on behalf of LeShop.ch pointed out further potential in Switzerland: 26 per cent of the respondents who have never purchased food online can imagine doing so in future.


Main growth drivers: a new website and more flexible delivery windows

New and more precise services will hopefully drive further growth: LeShop.ch presented its totally new webshop this autumn, with a better-organized design, new product images, an intuitive layout, a fast search engine and an E-magazine (Emag) containing ideas and promotions. The “My lists” heading groups customer’s favourite products on the basis of past purchases. That makes purchasing and reordering easier.

LeShop.ch has further extended its delivery times which are designed to meet its customers’ evolving needs: customers in the French-speaking part of Switzerland, in the County of Valais and in the greater Bern area can now arrange for their shopping to be delivered as early as 6.30 in the morning, for instance before they go to work. The precise evening delivery within a 1.5 hour time-frame between 4.30 and 9 pm is now also available in Bern, Basel, Lucerne and Winterthur following Zurich, Lausanne and Geneva. Around 117,000 households now benefit from this service. A total of nine delivery windows (or 10 including the early morning delivery) are now available in these cities. Saturday morning delivery is now also available throughout Switzerland.


Strong growth of organic and Alnatura products

Growth of LeShop.ch organic products sales has been particularly strong: compared to the previous year, sales of the Alnatura, Alnavit (gluten and lactose-free, natural juices) and Alviana products (natural cosmetics) rose by 25 per cent. Nine out of ten LeShop.ch customers buy organic and/or Alnatura articles. With its extensive and popular organic assortment, LeShop.ch helps to promote the Migros Group’s sustainability concept.

LeShop.ch — 2016 results:

2015

2016

1st half 2015/2016

Performance 2015/2016

Sales
(CHF million)

176

182.1

+ 4.1 mio /
+ 4.6%

+ 6.1 mio / + 3.5 %

Share of mobile orders* (smartphone, tablet)

40%

42 %

+ 1 % / + 2.6 %

+ 2 % / + 5 %

* For the month of December

LeShop Jahreszahlen 1216 ENG

Further information:

LeShop.ch – the company’s history at a glance

  • December 2016: ch has broken another record: Sales rose by 3.5% to 182.1 million francs.
  • July 2016: LeShop.ch achieves again a sales record of 93.6 million Swiss francs (+ 4.6%). The biggest Swiss online grocery retailer looks back on four years of successive growth.
  • December 2015:ch achieves record sales of CHF 176 million, 40% of orders are placed from a smartphone or tablet.
  • October 2015: Customers in more than 40 cities in Switzerland can choose from more precise delivery windows for home deliveries: at the customer’s choice, LeShop.ch delivers between 9 a.m. and noon, between noon and 2 p.m. or between 2 and 5 p.m.
  • July 2015: ch concludes the first half of 2015 with new record sales of CHF 89.5 million. With an increase by CHF 6.5 million or 7.8%, this is the strongest growth in five years.
  • June 2015:ch now also delivers to eleven PickMup collection points in Migros branches, migrolinos and Fitness Parks in the Zurich/Winterthur area and French-speaking Switzerland.
  • December 2014:ch achieves record sales of CHF 165 million, 37% of orders are placed from a smartphone or tablet.
  • October 2014: SBB and LeShop.ch complete a joint pilot project LeShop.ch RAIL. The findings will be used for the development of future services.
  • September 2014:ch opens the second DRIVE pilot site in Staufen near Lenzburg. The Migros subsidiary offers customers in central German-speaking Switzerland a fast pick-up service for the first time. On the first day, 269 customers used the new DRIVE service.
  • With the introduction of the daytime delivery service,ch is now available to all Swiss households and business customers across the country.
  • July 2014:ch doubles its range of organic products. The online supermarket now offers about 300 Alnatura products throughout Switzerland.
  • December 2013:ch concludes its anniversary year with uninterrupted growth and an increase in turnover of 6%, i.e. an increase of 9 million francs.
  • The LeShop.ch DRIVE in Studen celebrates its first anniversary: in its first year of operation, the new collection concept generates a turnover of 3.5 million, with over 30,000 orders by 5,000 customers.
  • October 2013: Dominique Locher (1969) succeeds Christian D. Wanner as CEO of LeShop.ch, to work alongside COO Sacha Herrmann.
  • April 2013: The mobile Internet proves to be a strong growth factor — one in every three orders is now placed via iPad or iPhone. The DRIVE concept takes off: every week, 1,150 customers use this option to collect their shopping.
  • March 2013: The project “LeShop.ch goes mobile”, with three applications for iPhone, iPad and Android, is awarded with the bronze medal at “Best of Swiss Web Award”.
  • ch is cash-flow positive in the home delivery sector for the second consecutive time, despite the difficult economic context.
  • The LeShop.ch apps for iPhone and iPad are distinguished by Apple and included in the “Best of 2012” category.
  • December 2012: ch RAIL is launched in partnership with Swiss Federal Railways (CFF), allowing commuters to pick up their orders at Zurich or Lausanne main station.
  • October 2012: The first LeShop.ch DRIVE opens in Studen (BE), attracting major attention from media and residents. This business model, unique in Switzerland to this day, wins over 200 customers on the opening day and enjoys remarkable success in its first months.
  • July 2012: The LeShop.ch app for iPad is launched, topping the App Store charts (lifestyle apps) just a few days later. iPhone and iPad account for 17% of all orders.
  • December 2011: Break-even for LeShop.ch — the company becomes one of the world’s first profitable pure-players in the online grocery business.
  • August 2011: Start of the cooperation with Denner, allowing customers to buy a range of popular Denner wines at LeShop.ch.
  • January 2010: The LeShop.ch app for iPhone is launched, based on a unique technological innovation. It quickly becomes one of the most popular apps in the Store. By October 2010, 5% of all orders are placed via iPhone.
  • June 2009:ch innovates with home delivery of frozen foods and develops a reusable cool box using dry ice.
  • November 2008: After ten years of existence, LeShop.ch breaks through the 100 million turnover barrier.
  • April 2008:ch celebrates its 10th anniversary, publishing a commemorative book to mark the occasion.
  • October 2006: The second LeShop.ch logistics centre is inaugurated by Swiss Federal Councillor and trade minister Doris Leuthard in Ecublens (VD). The company’s headquarters are also transferred to Ecublens.
  • April 2006:ch concludes Q1 2006 with the company’s first operating profit. The Federation of Migros Cooperatives acquires an 80% share in LeShop SA, launching an investment programme for future developments.
  • March 2005: The online supermarket evolves towards an online shopping centre: following the launch of perfumes at the end of 2004, LeShop.ch introduces Do it + Garden articles as well as Eismann frozen foods.
  • January 2004: Migros closes down the website migros-shop.ch. ch absorbs the Migros product range and takes on Migros’ customers, ushering in an eight-year period of notable success with average yearly growth of 30%.
  • September 2003: Official announcement of the strategic partnership with Migros, initially without financial participation by the Federation of Migros Cooperatives (Migros-Genossenschafts-Bund, MGB).
  • January 2003: Following an overwhelming solidarity movement involving customers, partners and suppliers, leading to a record turnover, LeShop.ch is saved: investment group ShoppingNet Holding SA and the company’s management acquire the company from Bon appétit Group.
  • December 2002: Bon appétit Group, majority shareholder of LeShop SA since October 2002, decides to refocus on its core business and announces the closure of LeShop.ch for the end of Decembe Three months later, the group is taken over by Rewe Deutschland.
  • November 2001: An exclusive partnership deal with ExpressPost ensures rapid and reliable evening delivery of orders.
  • August 2001: Switzerland’s first e-commerce logistics centre, planned and executed by LeShop.ch, begins operation in Bremgarten (AG). Dominique Locher completes the project in a record time of four months.
  • November 2000: Christian Wanner takes over the management of LeShop.ch from Alain Nicod.
  • June 2000: Subsidiaries are founded in Germany (LeShop.de) and Argentina (LeShop.com.ar). Both are closed down again at a later date.
  • August 1999: Bon appétit Group takes over3% of LeShop SA share capital.
  • November 1998:ch develops a cold chain system for the delivery of fresh products and starts selling fruit, vegetables, meat, etc.
  • April 1998:ch goes online. Switzerland’s first online supermarket offers more than 1,500 dry grocery products and teams up with the Swiss Post for home delivery throughout the country.
  • October 1997: LeShop SA is founded by young entrepreneurs Alain Nicod, Jesús Martin Garcia, Rémi Walbaum and Christian Wanner.

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