With the sale of the loss-making organic chain Tegut, Migros is withdrawing completely from Germany. Most of the stores will go to Edeka, while Rewe will also take over a significant number.
Intense competitive pressure
Migros Zurich, the largest division of the Swiss cooperative, took over Tegut in early 2013, but failed to make the chain of around 300 organic stores profitable. Despite a restructuring operation, Tegut still posted an operating loss of 26 million Swiss francs (almost 29 million euros) last year, compared to 55 million (61 million euros) in the previous year, with declining sales. In total, the German adventure will cost Migros 570 million Swiss francs (600 million euros) in write-offs.
