German supermarket chain Tegut, owned by Switzerland’s Migros Group, is accelerating its restructuring plan — and will shut down more branches than originally announced. The decision marks the latest step in a difficult turnaround process after years of declining profits and shrinking margins.
According to reports from the Lebensmittel Zeitung, Tegut now plans to close around 50 stores, instead of the 35 previously expected. This would amount to roughly one-sixth of its total 300 outlets across Germany.
Focus on southern Germany and Rhine-Main region
The closures will primarily affect southern Germany, including parts of Bavaria, as well as locations in the Rhine-Main region. In Bavaria, Tegut currently operates branches in Munich, Würzburg, and Fürth, all of which could be affected by the restructuring.
A spokesperson for Migros Zürich (GMZ) confirmed that the company is reviewing its entire store portfolio as part of an ongoing restructuring and efficiency plan. The goal, they said, is to stabilize operations and refocus on profitable markets.
Losses of €59 million in 2024
Tegut’s financial situation has been difficult for several years. In 2024 alone, the retailer posted a loss of around €59 million, prompting management to implement strict cost-cutting measures.
GMZ CEO Patrik Pörtig reported that early results from the restructuring have been “encouraging.” The company has already achieved a 40 percent improvement in results through a combination of store closures and administrative job cuts.
A spokesperson for Migros told Osthessen News that the restructuring is “having a strong positive effect” and that Tegut is now leaner, more efficient, and more agile — describing the company as “back on a course toward profitability.”
Future of affected employees remains unclear
Tegut has not yet confirmed which specific locations will be closed or what will happen to employees at those sites. Discussions about potential takeovers of some branches by other retailers are reportedly ongoing.
Unions and local officials in affected regions have called for clarity regarding staff transfers and severance arrangements.
Despite the planned closures, Tegut’s management insists that the company will continue to focus on its core markets and regional supply chains, maintaining its emphasis on sustainable and organic products — the segment that has long distinguished the brand from larger discount rivals.
A symbol of retail restructuring in Germany
The Tegut case reflects a broader challenge in Germany’s retail landscape. Rising operational costs, changing shopping habits, and the dominance of discounters like Aldi and Lidl have pushed many mid-sized supermarket chains into crisis.
As consumer behavior shifts toward cheaper options and online grocery services, even established regional brands are being forced to rethink their business models.
