Migros sells struggling Tegut chain to Edeka after years of losses

Migros Zurich has sold its struggling German organic supermarket chain Tegut to Edeka. The deal marks the end of a costly chapter for the Swiss retailer, which faced years of losses under Tegut's ownership. CEO Patrik Pörtig confirmed the sale but did not disclose the purchase price.

Tegut, acquired by Migros in 2010, rarely turned a profit. In 13 years, it recorded just three profitable periods—all during the Covid-19 pandemic. Despite initial plans to give the chain until 2026 to recover, Pörtig accelerated the sale due to mounting competition and an unsustainable business model.

Edeka will take over a significant portion of Tegut's operations, including around 200 of its 338 stores and 40 unmanned Teo convenience kiosks. The deal also covers a logistics centre, an organic bakery, and the operator of Teo locations. However, the remaining stores not acquired by Edeka may be sold to competitors like Rewe, Aldi, or Lidl. Any unsold locations will close, resulting in job losses and the disappearance of the Tegut brand.

The sale aligns with Migros' new strategy to focus solely on its Swiss core business. It also ends the legacy of former CEO Jörg Blunschi, whose foreign investments—including Tegut—proved financially burdensome. Migros Zurich expects a net loss of €600 million from write-downs and winding-up costs, with €270 million already earmarked for debt waivers and impairments in 2025.

The transaction leaves Migros Zurich with a substantial financial hit but removes a long-standing drain on resources. Edeka's partial takeover will preserve some Tegut operations, though many stores and jobs remain at risk. The final number of retained locations will be confirmed after cartel proceedings conclude.