Migros Zurich withdraws from the German market and sells Tegut
Keystone-SDA
Migros Zurich has decided to pull out of Germany to focus on its core Swiss market. The cooperative plans to sell its German subsidiary, Tegut.
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Despite significant cost-cutting, which helped the Tegut Group more than halve its operating losses last year, the economic climate in Germany continued to worsen, resulting in a drop in sales, Migros Zurich said in a statement on Wednesday.
“A detailed review of the situation has made it clear that, given its specific market position and relatively small size, Tegut is not economically sustainable in the long term under these conditions,” the Zurich-based cooperative said.
An agreement has already been reached with Edeka for the retailer to take a significant stake in the Tegut supermarket chain. A full takeover by a distributor not currently active in the German market was deemed infeasible.
Translated from French by AI/sp
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