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Digitec Galaxus

Digitec Galaxus AG is a leading Swiss e-commerce company and the largest online retailer in the country, majority-owned by the Migros Group since 2015, operating the specialized platforms Digitec for consumer electronics and IT products and Galaxus for a broader assortment of general merchandise including home appliances, leisure items, and daily necessities.^[1]^[2]^[3] Founded on May 8, 2001, by Florian Teuteberg, Oliver Herren, and Marcel Dobler in a small 25 m² office in Zurich, the company initially focused on online sales of IT hardware and electronics targeted at gamers, achieving CHF 4 million in sales in its first year.^[2] In 2012, Migros acquired a 30% minority stake for an estimated CHF 42 million, providing capital for expansion, and increased its ownership to 70% in 2015, integrating Digitec Galaxus as a key non-food retail subsidiary within the Migros Group.^[2]^[1] The launch of the Galaxus platform in 2012 broadened the product range beyond electronics to over 3 million items by 2018 through a marketplace model introduced in 2016, while Digitec maintained its niche in high-tech gadgets.^[2] As of 2024, Digitec Galaxus employs approximately 2,300 staff across Switzerland and international operations, with further growth through new logistics facilities, including a warehouse opened in October 2025 in Neuenburg am Rhein, Germany, expected to create 1,200 jobs.^[4]^[2]^[5]^[6] The company operates 10 physical Digitec stores in Switzerland and has expanded e-commerce to Germany (2018), France (2023), and other EU markets, emphasizing low prices, fast delivery, and climate-neutral shipping since 2020.^[7]^[1]^[8]^[9] In 2024, it reported sales growth of 17.6%, contributing significantly to the Migros Group's record CHF 32.5 billion in overall sales.^[10]^[11]^[12]

History

Founding and early years

In April 2001, a collective partnership named Nägeli Trading & Co. was established by three young entrepreneurs—Oliver Herren (then Oliver Nägeli), Florian Teuteberg, and Marcel Dobler—who were former employees of the Swiss retailer Computer-Express and passionate gamers themselves.^[13]^[14] The company was incorporated as Digitec AG on May 8, 2001, and initially operated from a modest 25-square-meter office in Zurich's Seebahnstrasse, focusing on sourcing high-end IT components, electronic parts, and consumer electronics directly from international suppliers to offer competitive prices to Swiss customers, particularly targeting PC gamers seeking affordable hardware.^[2]^[14] This business model emphasized an online-only sales channel, with the launch of digitec.ch in May 2001 as Switzerland's first dedicated e-commerce platform for such products, driven by the founders' mission to provide unbeatable prices on quality electronics without the overhead of physical retail.^[2]^[14] In its inaugural year, the company achieved rapid growth, generating CHF 4 million in revenue by December 2001 through direct imports and efficient online operations that bypassed traditional distribution markups.^[2] By March 2003, expanding demand prompted a relocation to a larger 400-square-meter facility at Pfingstweidstrasse 60 in Zurich, where the team began assembling custom PCs and managing inventory on-site to support the burgeoning customer base.^[2]^[13] This period marked the establishment of core practices like customer-focused pricing and reliable online fulfillment, which solidified Digitec's position as an innovative player in Switzerland's nascent e-commerce landscape for electronics. A key milestone came in January 2005, when Nägeli Trading & Co. was restructured into Digitec AG, a joint-stock corporation, to accommodate further scaling and professionalization.^[13] Later that year, in October, the online store underwent a significant redesign, introducing enhanced functionality and user comfort to improve the shopping experience and broaden its appeal beyond niche gaming hardware to a wider range of consumer electronics.^[13] These developments reflected the company's steady evolution during its formative years, setting the stage for sustained growth in the mid-2000s.

Rebranding, mergers, and ownership

In 2012, the founders of Digitec launched Galaxus.ch as a sister online shop to expand beyond consumer electronics into a broader range of products, including household goods, fashion, and lifestyle items.^[2] This move marked a strategic diversification, positioning Galaxus as Switzerland's largest online department store while Digitec focused on tech and IT specialties.^[15] By 2015, Digitec and Galaxus were merged into a single entity, Digitec Galaxus AG, to unify operations under one corporate structure.^[16] Concurrently, the Federation of Migros Cooperatives increased its ownership from a 30% minority stake—acquired in 2012—to 70%, with the remaining 30% held by the original founders.^[16] Marcel Dobler had left the company in 2014.^[1] This acquisition provided significant capital for growth while allowing the founders to retain management control.^[1] In 2017, Digitec Galaxus introduced gamification elements to enhance user engagement, becoming the first Swiss online retailer to implement such features, including a "Rating Rookie" system that rewarded customers with points and levels for activities like writing reviews.^[17] That same year, in autumn, the company launched its recommerce initiative, enabling customers to resell previously purchased items directly on the Digitec and Galaxus platforms, promoting a circular economy approach to e-commerce.^[18]

International expansion and innovations

Digitec Galaxus initiated its international expansion in 2018 by launching operations in Germany, marking the company's first venture beyond Switzerland with the introduction of galaxus.de.^[19] This was followed by entry into Austria on October 11, 2021, launching with 500,000 products and growing to over 1 million by 2022.^[20]^[21] In 2023, the company further expanded to France, Italy, Belgium, and the Netherlands; total EU markets served 1.03 million active customers by year-end (a 39% increase from 2022).^[22] These expansions were supported by the post-merger structure, which facilitated scalable innovations in product offerings and user experience.^[23] Amid this geographic growth, Digitec Galaxus introduced key innovations starting in 2020, including sustainability filters that enable customers to identify products certified for eco-friendly production, such as energy-efficient appliances and organic goods.^[24] The company also expanded its product categories to include home essentials, DIY tools, and sports equipment, with the DIY range alone surpassing 500,000 items by 2023 to become Switzerland's largest online selection in that segment.^[25] These additions aligned with the platform's "pretty much everything" ethos, diversifying from consumer electronics to everyday lifestyle needs.^[26] In 2023, Digitec Galaxus launched Galaxus Mobile, a subscription-based mobile service offering plans like unlimited data in Switzerland for 19 Swiss francs per month, integrating telecom services into its e-commerce ecosystem.^[27] Concurrently, the marketplace model grew significantly, reaching 6.3 million products by late 2023 through partnerships with over 1,000 merchants, enhancing assortment variety without direct inventory management.^[28] To support ongoing international operations, Digitec Galaxus opened its first logistics center in Neuenburg am Rhein, Germany, on October 14, 2025, with capacity for gradual expansion and plans for a second facility nearby between 2025 and 2028.^[5] This infrastructure aims to handle increased cross-border demand, employing up to 1,000 staff by 2030 while optimizing European distribution.^[29]

Business Operations

Product range and marketplace

Digitec primarily specializes in electronics and information technology products, serving as Switzerland's leading online retailer in consumer electronics, with offerings such as smartphones, computers, monitors, and digital accessories.^[30] In contrast, Galaxus operates as a comprehensive online department store, expanding beyond tech to encompass a wide array of general merchandise categories including home and kitchen items, DIY and garden tools, sports and recreation equipment, toys, health and beauty products, and fashion.^[31] This division allows the platforms to cater to distinct customer needs while sharing the same parent company infrastructure. Central to their operations is a hybrid marketplace model that integrates Digitec Galaxus's own inventory with third-party sellers, enabling a vast expansion of available products. As of 2025, the combined platforms offer over 8 million products, facilitated by more than 1,000 external merchants who contribute significantly to the assortment through direct sales contracts with customers.^[32]^[33] This model not only diversifies the inventory but also supports scalability, with third-party contributions accounting for a substantial portion of the total range. In addition to core retail, Digitec Galaxus provides specialized services such as Galaxus Mobile, which offers affordable telecom subscriptions including unlimited national data plans in 5G networks starting at 19 Swiss francs per month.^[34] The company also emphasizes recommerce through its Re!commerce brand, focusing on refurbished electronics like smartphones, tablets, and notebooks that are restored to high standards for resale, promoting sustainability while providing cost-effective alternatives to new devices.^[35] Overall, the platforms prioritize an extensive assortment covering everyday essentials—from household goods to leisure items—at competitive prices, positioning them as a one-stop solution for Swiss consumers seeking variety and value.^[31]

Physical stores and omnichannel strategy

Digitec Galaxus operates 10 physical stores across Switzerland, located in cities such as Zurich, Basel, Bern, Dietikon, Geneva, Kriens, Lausanne, St. Gallen, Winterthur, and Wohlen. These locations function primarily as showrooms, allowing customers to interact with over 100 products on display, including smartphones, notebooks, and other electronics, for hands-on demonstrations and testing to inform online purchases.^[36] The stores emphasize customer experience through personalized advice from staff and supplementary services like screen protector application and data transfer between devices, without conducting traditional in-store retail sales. Instead, the focus remains on supporting and enhancing the digital shopping journey by bridging online browsing with tangible product evaluation.^[36]^[37]^[38] As collection points for online orders, the stores enable a click-and-collect service, with approximately 60% of pickups occurring on the same or next day, facilitating seamless integration between e-commerce and physical access. Additionally, around 25% of returns are processed in-store, available to customers from both Digitec and Galaxus platforms.^[36] This omnichannel strategy, which blends online shopping with in-person services, originated from the 2015 merger of Digitec and Galaxus, positioning the company as more than a pure online retailer by offering a hybrid model that caters to diverse customer preferences. As noted by Daniel Cyganek, Head of Retail, "We’re not merely an online retailer... It’s our unique selling point."^[36]

Logistics infrastructure

Digitec Galaxus operates its primary logistics hub in Wohlen, Switzerland, which serves as the company's largest warehouse facility spanning approximately 70,000 square meters and employing over 1,000 staff during peak periods to manage inbound and storage operations.^[15]^[39] In Germany, the firm maintains two logistics centers in Krefeld, with the initial site covering about 5,500 square meters in the southern area and a second facility opened in 2022 to handle increased volume for both German and Austrian markets.^[40]^[41] To accommodate growing demand, Digitec Galaxus has initiated expansions including a new logistics center in Neuenburg am Rhein, Germany, which opened in October 2025 as the first of two planned sites totaling 90,000 square meters and projected to employ up to 1,200 workers.^[5]^[29] Additional planned facilities in Utzenstorf and Rafz, Switzerland, announced in early 2024, are slated for completion between 2025 and 2028 to bolster the overall supply chain capacity across Europe.^[42] The company partners with Vanderlande for advanced automation in its Wohlen warehouse, implementing systems such as the QUICKSTORE MINILOAD and MICROSHUTTLE automated storage and retrieval solutions since 2018 and 2020, respectively, which provide 180,000 storage locations and process up to 70,000 parcels per day.^[39] These technologies enable efficient picking and packing for a diverse assortment exceeding 3 million products, supporting the high-volume demands of general merchandise e-commerce while ensuring ergonomic workflows and high system availability.^[39] This infrastructure expansion, particularly in the EU through sites like Krefeld and Neuenburg, underpins Digitec Galaxus's international growth by enhancing cross-border supply chain efficiency and scalability for its broad product range.^[42]^[41]

Delivery and customer services

Digitec Galaxus partners with Swiss Post and Planzer for domestic shipping within Switzerland, ensuring reliable parcel handling for products stocked in their warehouses.^[43] In European markets such as Germany and Italy, the company collaborates with DHL to manage deliveries, facilitating efficient cross-border logistics.^[44]^[45] The company offers same-day delivery to approximately 60% of Swiss households, rolled out progressively in 2023 to cover major metropolitan areas, with orders placed by early afternoon typically arriving the same evening.^[46] To promote sustainability, Digitec Galaxus introduced a slow delivery option in 2022, allowing customers to opt for extended shipping times that reduce logistical strain and emissions; by late 2022, about 20% of orders utilized this eco-friendly choice.^[47] Free delivery is provided for orders exceeding CHF 50 in Switzerland and Liechtenstein, and €30 in Germany, covering standard shipping without additional fees.^[43]^[44] Customers benefit from a 30-day return window for most products, enabling hassle-free refunds or exchanges when items are returned in original condition via online registration.^[48] Post-purchase support includes real-time order tracking through the Digitec Assistant platform and dedicated customer service channels for inquiries.^[49] Digitec Galaxus supports international deliveries through localized websites in countries like Germany, Austria, Italy, and France, extending its shipping network to serve expanded European markets with tailored options.^[44]

Financial Performance

Revenue growth and figures

Digitec Galaxus began operations in 2001 with initial sales of CHF 4 million.^[2] The company experienced steady growth in its early years, reaching CHF 992 million in platform sales by 2018. In 2019, platform sales increased by 16% to CHF 1.146 billion.^[50] The COVID-19 pandemic accelerated this trajectory, with platform sales surging 59% to CHF 1.826 billion in 2020.^[51] By 2023, platform sales across Digitec and Galaxus platforms in Switzerland and Europe reached CHF 2.744 billion, reflecting a year-over-year growth of 13.1%.^[52] This figure encompassed CHF 2.464 billion in net revenue from goods and services sold, up 11.6% from CHF 2.207 billion in 2022.^[53] International sales contributed significantly to the growth, with a 54% increase in that segment, including 286 million euros (approximately CHF 275 million) from EU markets, primarily Germany.^[54] Domestic Swiss sales formed the majority, accounting for over 90% of total platform sales.^[53] In 2024, platform sales grew 17.6% to CHF 3.228 billion, including international operations.^[12] Net revenue from deliveries and services rose 17.2% to CHF 2.889 billion.^[32] International sales advanced 22.8%, reaching about 362 million euros (approximately CHF 355 million) in the EU, while Swiss domestic revenue continued to dominate the overall figures.^[55]

Market position and competitors

Digitec Galaxus holds the position of Switzerland's largest online retailer, achieving platform sales of CHF 3.228 billion in 2024, which underscores its dominance in the domestic e-commerce sector.^[32] This scale positions it ahead of other players, with its combined Digitec and Galaxus platforms serving as the leading destinations for consumer purchases in the country.^[4] In the Swiss market, Digitec Galaxus competes primarily with electronics-focused retailers such as MediaMarkt and Brack.ch, as well as broader platforms like Amazon, which operates without a dedicated Swiss site but influences cross-border shopping.^[56] While MediaMarkt maintains a strong physical retail presence with large stores, Digitec Galaxus differentiates through its integrated online ecosystem, and Brack.ch offers similar electronics assortments but on a smaller scale.^[57] Amazon poses a notable threat via its European operations, particularly in logistics and pricing, yet Digitec Galaxus benefits from localized service and faster delivery tailored to Swiss consumers.^[58] The company commands a significant market share in electronics through Digitec, which specializes in high-tech products, and in general merchandise via Galaxus, which encompasses household goods and lifestyle items, bolstered by its omnichannel strategy that combines online sales with physical pickup points and stores.^[56] This hybrid approach provides a competitive edge over purely digital rivals, enabling seamless customer experiences that enhance loyalty and capture a larger portion of the CHF 14.9 billion Swiss e-commerce market in 2024.^[59] Digitec Galaxus's growth in EU markets, including expansions into Germany, France, and Austria, has solidified its role as a regional leader, with international customers reaching 1.2 million in Germany alone and overall EU sales contributing substantially to its 18% year-over-year increase.^[60] Backed by Migros, the company continues to invest in logistics and localized offerings, positioning it to challenge pan-European giants like Amazon in select markets.^[61]

Recognition

Awards and industry honors

Digitec Galaxus has garnered significant recognition in the Swiss e-commerce sector for its overall performance, innovative features, and customer-oriented strategies. In 2017, Galaxus received the Swiss E-Commerce Champion award at the Swiss E-Commerce Awards, honoring its excellence as the top online retailer, along with category wins in B2C Home & Living and Curation, Social and Content for outstanding product presentation and community engagement.^[62]^[63] The company continued its success with multiple victories at the Swiss E-Commerce Awards and Digital Commerce Awards from 2017 to 2018, including the prestigious Digital Commerce Champion title in 2018 for the second consecutive year, as well as awards in categories such as best online shop, customer service, home and living, electronics and media, community and storytelling, and best feature, highlighting its superior user experience and platform innovations.^[64]^[65]^[66] Post-2018 accolades include the GenAI Zürich Award in the AI's Choice category in 2025, awarded for developing a scalable AI-driven product specification pipeline that automates data enrichment across millions of product pages, enhancing e-commerce efficiency with 95% accuracy and substantial cost reductions.^[67] In 2024, Digitec Galaxus ranked 9th in the Kreativranking for creative advertising efforts.^[68] In 2025, it was ranked #7 among the Most Attractive Employers for IT students in Switzerland by Universum.^[69] Digitec Galaxus's logistics and delivery innovations, such as automated goods recognition and expanded European warehousing, have been highlighted in industry analyses for enabling rapid, reliable fulfillment that supports its market leadership.^[39]^[70]

Sustainability and corporate initiatives

Digitec Galaxus introduced a sustainability filter in December 2020 to facilitate the selection of eco-friendly products across its online platforms. This feature allows customers to identify items bearing quality seals such as Fairtrade, Energy Star, and FSC, covering approximately 20,000 products in over 100 categories initially, including options like organic, energy-efficient, and fair trade labels. The filter supports informed purchasing by highlighting environmentally responsible goods and has been expanded over time with input from suppliers.^[24]^[71] In August 2022, the company launched a slow delivery option, enabling customers to opt for 2–3 additional working days in transit for in-stock items to optimize logistics and reduce operational strain. This initiative contributes to lowering the carbon footprint by improving delivery efficiency, such as consolidating shipments and minimizing unnecessary trips, aligning with broader efforts to cut emissions, including a 21% reduction per unit shipped from 2020 to 2022 and a further 36% overall reduction compared to 2019 by 2023, with a 5% decrease per parcel in 2023 alone. The company aims to halve greenhouse gas emissions by 2030 relative to 2019 and achieve net-zero by 2050.^[72]^[73]^[74]^[75] Digitec Galaxus promotes a circular economy through its Recommerce program, which focuses on refurbished and second-hand goods to extend product lifespans and reduce waste. The company partners with Recommerce Swiss to offer tested refurbished electronics, such as smartphones, in dedicated sections, while 95% of customer returns are reused, resold, or refurbished via initiatives like Projekt Restwert. This approach keeps resources in circulation longer and supports the company's net-zero emissions goal by 2050.^[35]^[76]^[77]^[71] On the corporate side, Digitec Galaxus emphasizes positive workplace culture and diversity through structured initiatives. It has been certified as a Great Place to Work since 2020, with 74% of employees rating it positively for trust, team spirit, and flexibility, based on surveys assessing credibility, respect, and fairness. Diversity efforts include the D&I Guild established in 2019, which drives projects like pay equity analysis (revealing a 0.9% gender pay gap), unconscious bias training for managers, and tracking gender ratios in recruitment to foster inclusion across its multinational workforce.^[78]^[79]^[80]

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Swiss e-commerce sales reached CHF15 billion 2024 - Swissinfo
Mar 13, 2025 · In 2024, Swiss consumers purchased CHF14.9 billion worth of goods and merchandise online, a figure up 3.5% year-on-year, according to the study ...
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Galaxus reports 18% sales increase - Ecommerce News - Europe
Jan 13, 2025 · In 2024, 4.5 million people placed orders with Galaxus, including 1.2 million from Germany, Austria, Italy, and other EU countries. Sales in ...
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Migros Backs Further International Expansion of Galaxus
Sep 9, 2024 · The majority owner Migros has now approved the budget for this expansion over the next four years. Galaxus has big plans, especially in Germany.
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Galaxus crowned «Swiss E-Commerce Champion 2017
Jun 1, 2017 · Winning the main award as well as two category prizes, Digitec Galaxus was the night's absolute winners. We're delighted about this achievement!Galaxus Crowned ``swiss... · B2c - Home & Living · Curation, Social And Content...
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Digitec Galaxus ist Swiss E-Commerce Champion 2017 | Netzwoche
Galaxus.ch holte sich den Hauptgewinn des Swiss E-Commerce Awards 2017. Digitec Galaxus habe die 16-köpfige Jury mit einer hohen Fachkompetenz, der Social- ...
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Galaxus crowned «Digital Commerce Champion 2018
May 24, 2018 · Galaxus and digitec received five awards in total; Galaxus won the main award for the second year in a row. We're delighted about this ...Missing: history | Show results with:history
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Galaxus verteidigt Titel als Digital Commerce Champion | Netzwoche
Am 23. Mai 2018 wurden zum siebten Mal die Digital Commerce Awards verliehen. Nachdem Galaxus bereits vergangenes Jahr den Hauptpreis Digital Commerce Champion ...<|separator|>
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Alle Champions seit 2012 - Digital Commerce Award
Am Digital Commerce Award 2018 am 23 Mai im X-TRA in Zürich wurde Galaxusch zum Digital Commerce Champion 2018 ausgezeichnet – zum zweiten Mal in Folge Dass ein ...
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Scalable Product Specification Pipeline for Switzerland's Largest ...
Digitec Galaxus replaced months of manual data clean-up with an AI engine that instantly enriches every product page. Shoppers now see up to 30 % more useful ...
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Press & News - Logivations | Consulting & Technology
Digitec Galaxus AG, the largest online retailer in Switzerland, and ... recognition and localization of all relevant logistics objects. The ...
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The sustainability measures we've implemented - Galaxus
Nov 1, 2024 · Here you'll find a collection of our contributions to add more sustainability in online retail. For a better overview, the collection is divided into five ...Missing: initiatives | Show results with:initiatives<|control11|><|separator|>
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New on digitec and Galaxus: snail mail on demand
Aug 18, 2022 · The slow delivery option is also likely to save Digitec Galaxus money, which could then be used elsewhere. This is because we'll be able to ...Missing: carbon footprint<|separator|>
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Climate footprint 2022: Digitec Galaxus on track to meet reduction ...
Jun 22, 2023 · Over the past three years, we've managed to reduce the emissions level per item shipped from our warehouses by 21 per cent. As a result, we've ...Packaging: Less Is More · Warm Winter Makes For A Cool... · Progress Obscured By GrowthMissing: slow | Show results with:slow
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Galaxus: Slow Delivery Fast Awareness - Reppatch
Galaxus' environmental contribution with its slow delivery application: Reduces carbon emissions per delivery. Reduces unnecessary cargo trips. Minimizes ...
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Our strategy for greater sustainability - Galaxus
Nov 1, 2024 · Thanks to filters, our customers can find sustainably produced products that meet the criteria of recognised certifications. Customers can also ...
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https://www.galaxus.ch/en/page/new-on-digitec-and-galaxus-snail-mail-on-demand-24534
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Yay! We're officially a great place to work - Galaxus
Feb 4, 2020 · Corporate diversity and the survey results These points are clearly reflected in the results of the «Great Place to Work» survey all employees ...
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Digitec Galaxus AG - Expert:innen for workplace culture
In 2012, the founders launched Galaxus, Switzerland's largest online department store. The constantly growing product range extends from household items to ...
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Diversity at Digitec Galaxus: still room for improvement
May 5, 2022 · Another important goal of the D&I guild is to create more transparency with regard to diversity in the company. 2021 was a breakthrough year for ...