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Slight growth, final gaps in delivery network filled, second DRIVE under construction

Online supermarket LeShop.ch expands services and delivery network

In the first half of 2014, LeShop.ch, Switzerland’s largest online supermarket, generated food sales of CHF 83 million via the internet, corresponding to a small turnover increase of 1.3% or CHF 1 million. LeShop.ch has filled the final gaps in its delivery network and is now available to all Swiss households and business customers across the country. In autumn, LeShop.ch will open a second DRIVE collection point in Staufen, near Lenzburg. The mobile channel is currently becoming more important for the market leader: the share of orders placed from smartphones and tablets has grown by almost a fifth to 35% of all purchases.

The sales volume of the Migros subsidiary remains stable at CHF 83 million in the first half of 2014 compared with the same period of the previous year (plus CHF 1,000,000 or 1.3%). Dominique Locher, CEO of LeShop.ch, says: “Although buying groceries online has become daily practice, the market potential is far from exhausted – which is why we continue to improve the cross-channel concept, ranging from in-store purchases to home delivery and collection points. At the same time, the mobile web and enhanced delivery and collection services will generate further growth.” The mobile channel alone produced a sales volume of CHF 29 million in the first half year, 17% higher than in the same period of the previous year. The iPad is the most used mobile device (55%), followed by the iPhone (29%) and Android smartphones (15%).


Expansion of delivery network and service: total coverage and second DRIVE
With the introduction of the daytime delivery service, LeShop.ch has filled the last gaps in the delivery network, now servicing a further 730 municipalities in the Alps, Ticino and south-west Switzerland. The COO of LeShop.ch, Sacha Herrmann, who is also responsible for logistics, states: “The Swiss Post now delivers across the whole of Switzerland –even to the most remote alpine valleys. With the daytime delivery service, we can now reach offices, workshops and crèches, for which a delivery during office hours is essential.” This allows LeShop.ch to expand its potential clientele by around 185,000 private household addresses and offer daytime groceries delivery services to all companies, associations and institutions throughout Switzerland. At the same time, LeShop.ch has doubled the size of its organic product range: the online supermarket has supplemented its range with 278 Alnatura brand products, making organic goods available to customers across all of Switzerland. Furthermore, the second DRIVE collection point will open in Staufen, near Lenzburg in autumn 2014. Building on the experience gained from the first location in Studen near Biel, LeShop.ch is expanding this pilot project, which is unique in Switzerland. The concept of the DRIVE collection stations is also gaining momentum abroad: in the pioneer market of France, already 4% of the retail trade is being generated through 2,800 drive-in stations, now also located on motorways. Further collection stations are widespread in Great Britain and are currently being introduced in Italy and by Walmart in the US. The LeShop.ch DRIVE collection concept is a first in Switzerland.

LeShop.ch – First half results:

H1 2013 H1 2014 Performance 2014/13
Turnover
(million CHF)

82

83

+ 1 mio / + 1.3 %
Cash turnover
incl. VAT*

85

86 + 1.1 mio / + 1.3 %
CO2 savings** (tonnes) 661 641 - 20 / -3 %
Share of mobile orders*** (smartphone, tablet)

30%

35%

+ 5 % / + 17 %

* as disclosed by competitors
** collective delivery by LeShop.ch as compared to private shopping trips in a car
*** by the end of the semester









LeShop.ch is the Swiss market leader in online retail. LeShop SA was founded as a pioneering company by private entrepreneurs in 1997. Since 1 January 2006, LeShop.ch has been a subsidiary of the Federation of Migros Cooperatives (Migros-Genossenschafts-Bunds MGB). Further details of the company’s history, as well as photos, graphs and other information can be found at http://info.leshop.ch

At the end of September 2013, Dominique Locher, who has been with LeShop.ch as Marketing and Sales Director since 2000, took over as CEO from co-founder Christian Wanner. Since October 2013, he has shared the leadership of the company with COO Sacha Herrmann (LeShop.ch Financial Director since 2004).


Further information:

LeShop.ch :

Dominique P. Locher, Chief Executive Officer, Tel. +41 (0)76 564 68 63,
dominique.locher@leshop.ch


Sacha Herrmann, Chief Operations Officer, Tel. +41 (0)78 886 54 56,
sacha.herrmann@leshop.ch


Migros :
Urs Peter Naef, Media Speaker MGB, Tel. +41 (0)44 277 20 66,
urs-peter.naef@mgb.ch




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