German supermarket chain Migros is currently undergoing a major cleanup and cost-saving measures, with many businesses within the company being let go. However, despite experts’ advice to get rid of it as soon as possible, Tegut, a smaller supermarket chain known for its organic products, remains a priority for Migros Zurich.
Tegut was acquired by Migros Zurich in 2012 as part of an expansion into Germany. However, the decision has proven to be a costly endeavor, with Tegut struggling to turn a profit. The company has already racked up losses totaling over 50 million francs not including the initial purchase price. Experts in the retail industry have pointed out that Tegut’s business model is not sustainable in the highly competitive German market. The company’s focus on premium products and Swiss quality has not resonated with German consumers who are known for their price sensitivity and lack of brand loyalty.
Despite the challenges faced by Tegut, Migros Zurich has remained committed to the venture. However, with mounting losses and a difficult market environment, experts are urging the company to consider selling Tegut and cutting its losses. While Migros Zurich remains optimistic about its future recovery, the future of Tegut remains uncertain.
