Updated 23:05 (correction) Switzerland (TSR, Fre) – Migros, Switzerland’s largest supermarket chain, will be cutting back advertising for its own brands, which now account for about 90% of the store’s merchandise, president of the Migros federations, Claude Hauser, told Illustré. The move is part of a larger cost-cutting programme to reduce ad expenditure by about CHF50 million.
The company’s overall ad budget is reportedly about CHF350m. Migros has also just cut its contracts with its regular ad agencies and is putting out a call for bids, part of the greater move to economize.
Ed. note: an earlier story reported that the company was cutting back the number of its own brands, but Migros issued a statement Thursday saying the information was mistaken, the result of a misunderstanding, and that it has no intention of getting rid of a large number of its own brands. The cutback applies only to advertising for them: the company plans to focus on advertising a smaller group, perhaps 14 products. Details, TSR, Fre
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News story, GenevaLunch, 18 December 2008.
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Tags: advertising, brands, Migros, supermarkets, Switzerland