Tegut, a smaller supermarket chain known for its organic products, is currently facing major challenges in the highly competitive German market. Despite experts advising to sell it as soon as possible, Migros Zurich remains committed to keeping the venture.
Migros is currently in the process of cutting costs and undergoing a major cleanup. Several businesses within the company, including Melectronics, Sport X, Hotelplan, and Mibelle, are being let go. However, Tegut remains a priority for Migros Zurich. The decision to hold onto Tegut is a significant one for Migros, as the company is facing major job cuts and scrutiny for unprofitable ventures. In recent years, Migros has sold off several businesses, including Globus, the Glatt shopping center, and catering supplier Saviva. However, Tegut remains a priority for Migros Zurich despite mounting losses and difficult market conditions.
Tegut was acquired by Migros Zurich in 2012 as part of an expansion into Germany. While this seemed like a strategic move at the time, it has since proven to be costly endeavor. Tegut has struggled to turn a profit and has already lost 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 due to price sensitivity and lack of brand loyalty among German consumers who prefer premium products with Swiss quality. This has made it difficult for Tegut to compete against larger competitors leading to consistent losses for the company.
Despite these challenges faced by Tegut
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