Record loss Expansion in Germany costs Migros Zurich dearly
Zurich-based Migros is in the red for the fourth financial year in a row. In 2024, it even posted record losses: difficulties with its expansion in Germany are to blame.
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- 2024 was the worst year in the history of Migros Zurich.
- The regional cooperative posted an adjusted loss of CHF 116 million.
- The main reason: the expansion into Germany proved to be financially disastrous.
A net loss of CHF 116 million in the 2024 financial year is the worst result in the history of Migros Zurich. It is already the fourth year in a row with losses, as Migros writes in a press release. This was first reported by the Tages-Anzeiger newspaper.
Migros Zurich's expansion in Germany is having a particularly negative impact on the result and is mainly responsible for the record loss. A total of 135 million euros (around 126 million Swiss francs) had to be written off for the investment in the German retail subsidiary "Tegut".
A comprehensive restructuring program has now been initiated. Migros has set aside around 59 million francs for this purpose. Last year, "Tegut" posted losses of 55 million francs. The overall company result was also impacted by "extraordinary write-downs and expenses in connection with the specialist store sales and the expiry of the Alnatura franchise agreement".
In contrast, Micro Zürich achieved a slight increase in earnings in its operating business. Total sales rose to 4.175 billion Swiss francs. The company is planning to expand its core business in 2025. New branches are to be opened in Uznach (SG) and Zurich-Leutschenbach, for example. The company has set its sights on 40 new locations by 2030.
