1/5
The mood in the organic sector is depressed. A look at a Bachsermärt branch.
Samuel WalderRingier journalism student
From the Reformhaus Müller chain of stores is a bang on the organic market. With 37 branches and almost 300 employees, Reformhaus Müller is one of the larger organic chains in Switzerland. The mood in the industry is depressed after the bankruptcy report on Tuesday, as shown by talks that Blick held with various industry representatives.
For example with Carsten Hejndorf (55). He is the managing director of Bachsermärt, which specializes in sustainability and has five branches in the canton of Zurich. “When I heard the news that Müller had gone bankrupt, I had to swallow empty,” says Hejndorf. “We have our regular customers, but we’ve noticed that the shopping cart isn’t that full anymore.”
Health food store customer desperate: “I don’t know where to find my products yet”(01:53)
Reformhaus Müller also cited declining customer frequency as the reason for the bankruptcy. “We’ve lost 50 percent of our customers since 2016,” said Mischa Felber (38) from Reformhaus Müller.
Today you can buy organic everywhere
At first glance, it is surprising that organic markets and health food stores are struggling when sustainability is all the rage. But it is precisely this trend that is now fatal for the specialized providers, who are often pioneers in this field. “Many large stores have also entered the organic world,” says Andreas Lieberherr (58) from the food wholesaler Bio Partner, which supplies health food stores and other retailers. “Customers can now buy organic from Migros, Coop, Aldi or Lidl.”
The range has become broader and more diverse. “Previously, you used to do the bulk shopping in the organic store,” says Lieberherr. Today, the customer only makes the extra trip to an organic shop for very special products, or they are regular customers. Carsten Hejndorf from Bachsermärt also confirms this impression.
The organic trend flattened out in 2022
The price is also decisive: Migros, Coop and other large retailers have more leeway to offer the products at lower prices. Smaller chains like Reformhaus Müller are left behind.
“As is the case with hype, a lot of customers get on the same train first,” says Lieberherr. After the hype, it becomes clear who buys organic out of conviction. A look at the numbers shows that between 2016 and 2021 sales of organic products increased rapidly. The curve flattened out in mid-2022. Specific information is not yet available, as the evaluations are still ongoing.
The ongoing inflation is also likely to play a role here: when money is tight, people tend to go for the cheaper conventional rather than the more expensive organic product.
Expensive branches in prime locations
In addition to the fading organic hype and the tough competition from the large retailers, the health food store Müller’s prominent branches were also fatal. The flagship was located on Zurich’s Rennweg, next to high-end boutiques and international chains. Reformhaus Müller also operated a branch at Zurich main station.
“The branches on Rennweg and at Zurich train station are very good and certainly not cheap,” says Michael Dressen (49), an expert in retail real estate at the international real estate service provider CBRE. “Rents in these top locations are naturally high. If customers then find the same products in stores near their home, not enough customers come to Rennweg,” says Dressen.
Finding new tenants is not a problem
In addition, the shops have a good frequency of people walking past, but there are many tourists. They rarely go shopping in an organic shop. The now orphaned shops on Rennweg, at Zurich main station and other Müller locations should sell like warm toasts. Dressen has already received various inquiries from interested parties. “Finding someone new will not be a problem in such a prominent location.” Blick knows of a shoe store in eastern Switzerland that wants to take over the branches in Zurich.
Carsten Hejndorf from Bachsermärt, on the other hand, is not interested in the vacant branches in Zurich. He already runs three stores in Zurich, the other two are in Bachs and Eglisau ZH. Despite inflation and the flattening organic trend, he remains optimistic: “We have not lost any customers and can stand out from the standard range of organic goods from large suppliers.” Especially because fresh produce is sold in small organic shops like Bachsermärt. “That means we have a wide range of fresh vegetables, dairy products and bread.” No large retailer can offer this.