in transition period
Sales growth to decelerate in 2000: Migros` strong sales growth in the
last decade slowed down to 10% in 2000, due to its difficulties in opening
large-scale stores. This was mainly due to the company`s inability to find
suitable locations for new stores, as most of the constructions were
suspended after the August earthquake. We forecast a 12% USD sales growth
for the whole year in 2000.
Plans to open 30 Migros and 100 Sok stores in 2000 to support 12% USD
sales growth: Migros serves the domestic market in 5 different store
formats as summarized below. Soks are small-sized discount stores with
lower profit margins. Sok sales constitute 10% of total revenues. Migros
plans to separate Sok operations and float the new company on the ISE in
the following years.
The company plans to open 30 Migros and 100 Sok stores in 2000. Besides,
stores in foreign countries are expected to increase to 19-20 from 12 at