Tegut expansion Migros Zurich struggles with 180 million francs loss
Migros Zurich's actual losses considerably exceed the official figures. While new jobs are being created in Germany, employees in Switzerland are having to accept cutbacks.
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- Migros Zurich suffers a record loss of over 170 million Swiss francs due to its German subsidiary Tegut, which would be even higher without accounting tricks.
- Tegut, with a risk of around 500 million francs on its books, must be in the black by the end of 2026, otherwise it faces the end of its participation.
- Despite the loss, Migros Zurich remains the cooperative with the highest turnover, while jobs are being cut in Switzerland and new ones created in Germany.
Migros Zurich is facing considerable financial challenges that go far beyond the officially reported losses. While the German subsidiary Tegut is continuing to increase its workforce, numerous job cuts are being recorded in Switzerland, as reported by theSonntagsZeitungnewspaper.
The actual losses of Migros Zurich amount to 180 million francs, far more than the 116 to 125 million francs stated in the balance sheets.
A major factor in this discrepancy is the write-down of CHF 139 million on the German subsidiary Tegut, which has proved to be a costly undertaking. Overall, the commitment in Germany has so far cost Migros Zurich at least 700 million francs.
239 jobs have been cut in Switzerland
Migros Zurich has released hidden reserves amounting to 45.7 million francs and achieved a special profit of 9 million francs through the reclassification of leasing contracts, the newspaper continues. The reduction in the employer reserve also contributed to the reduction in losses. These measures conceal the actual extent of the financial problems.
In Switzerland, 239 jobs had to be cut, while Tegut created 288 new full-time positions in Germany. This development is in stark contrast to the cuts that Swiss employees have had to accept, including the increase in the retirement age to 65.
Leadership and responsibility
Jörg Blunschi, who is held responsible for the Tegut plight, was appointed President of Migros Aare after his departure in Zurich. However, he resigned following revelations about the losses. Migros Aare was able to increase its profits through the sale of real estate and other special effects, but without these measures it would have made a loss.
Despite the challenges, Migros Aare considers its interim targets to have been achieved. The question remains as to how Migros Switzerland as a whole is doing with a profit of CHF 419 million, while the largest cooperatives are struggling with financial difficulties.
The editor wrote this article with the help of AI.