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Migros withdraws from Germany and sells Tegut. Edeka is taking over large parts of the Fulda supermarket chain. Rewe has also secured some branches.
Fulda/Zurich – Update from 2:43 p.m.: Migros is selling Tegut: a large part of the branches is to be taken over by Edeka. According to both companies, a corresponding agreement has already been signed. The cartel office still has to approve the sale. Information about the purchase price was not provided.
Edeka wants to integrate around 200 of the more than 300 Tegut branches into the cooperative Edeka network. “With this agreement, we are creating a clear future perspective for the Tegut stores and their employees,” said the CEO of the Edeka headquarters, Markus Mosa. The closure of numerous locations would otherwise have threatened to result in the loss of more than 4,500 jobs, according to a report by the German Press Agency (dpa). Edeka did not provide further details.
Migros is ending the Tegut chapter and withdrawing from Germany
First report: The Migros Zurich Cooperative (GMZ) is withdrawing completely from the German market and will in future focus exclusively on business in Switzerland. In a statement published on Wednesday, March 11, Migros justified this step with a strategic reassessment in the course of the ongoing Restructuring of the Tegut Group.
The focus of the realignment is a contract with Edeka to take over a “significant part” of the Tegut Group. As Migros reports, it is also in advanced negotiations with other well-known German market participants.
According to a report by “Food Newspaper” Edeka takes over around half of the more than 300 branches. Rewe secured a high double-digit number. According to the report, Tgeut's 7,400 employees were informed about the settlement on Wednesday morning. After the Tegut collapse, the city and district of Fulda are hoping for a solution that will secure jobs and markets.
It was initially unclear what would happen to the Tegut brand. How “HIT RADIO FFH” with reference to the Migros press office, the brand name will no longer be used. The “Food Newspaper” reports that the Tegut brand will disappear “probably by the end of the year at the latest”. The “Neue Zürcher Zeitung” quotes Migros boss Patrick Pörtig as saying: “In the course of discussions with potential buyers, we noticed that no one has the courage to enter this market.” The locations are in demand – not the Tegut brand.
Focus on the Swiss market: Migros sells Tegut
The background to Migros' withdrawal is a significantly more difficult market environment in the German food retail sector. According to Migros, it was possible to reduce the Tegut Group's operating losses by more than half last year through massive cost savings. At the same time, however, the difficult conditions in Germany led to declining sales.
A comprehensive analysis has shown that Tegut is not economically viable in the long term under these conditions with its specific positioning and the comparatively small size of the company, it goes on to say.
In addition, Migros announced that discussions had previously been held about a complete takeover of the Tegut Group by a retailer with no previous connection to Germany. However, this option proved to be unworkable. In the subsequent negotiations with German retail chains, the focus from the start was on securing as many jobs as possible and continuing to operate the branches.
“The decision to sell Tegut was extremely difficult for us. The great commitment of our colleagues over the past few challenging months deserves my utmost respect. Nevertheless, the analysis has clearly shown that a total sale under the current market conditions offers the best long-term prospects for everyone involved – especially for the employees, but also for the customers,” explains Patrik Pörtig, Managing Director of Migros Zurich.
Edeka secures branches and logistics center
According to Migros, the takeover agreed with Edeka includes a large part of the branch network with the sales employees, as well as that Logistics center in Michelsrombachthe Herzberger bakery and the Smart Retail Solutions, the operator of the Teo Mini supermarkets in Germany. At the same time, discussions were ongoing with other market participants in order to find a future solution for all other locations if possible.
The transaction is still subject to approval by the Federal Cartel Office. It was agreed not to disclose the purchase price. Migros also announced that the completion of the sale would lead to extraordinary burdens, which will be reflected in the 2025 annual financial statements of the Migros Zurich cooperative and the Migros Group.
