Tackling the Turnaround: Tegut Refreshes Struggling Organic Markets
Food retailer Tegut has stepped in to rescue the bankrupt organic supermarket chain, Basic, with ambitious plans to revamp the stores in the coming weeks. The acquisition, confirmed by Tegut in Fulda on Tuesday, includes the 19 stores, Munich headquarters, and approximately 500 employees, following the court's approval of the insolvency plan and completion of objection periods.
The existing Basic outlets will undergo a facelift, phasing out from the Basic brand to fall under Tegut's umbrella. As announced by Tegut Managing Director Thomas Gutberlet, these rebranded stores will don the Tegut label, but will retain familiar favourites that resonate with customers. The German company has committed to maintaining a focus on organic items, ensuring that service counters continue to stock solely organic products.
Basic began a protective shield procedure towards the end of 2020, eventually agreeing for Tegut to take over all locations but one – Rosenheim. The new stores will be situated in regions including Bavaria, Baden-Württemberg, and the Rhine-Main area. The parties involved have not disclosed the purchase price.
Founded in Fulda, Tegut runs over 300 grocery stores across Germany. Known for its strong organic selection, Tegut has belonged to the Swiss cooperative Migros since 2013.
Post-acquisition, Tegut plans to amplify the struggling organic supermarket chain's stores by reinforcing their focus on organic products. Service counters in these new outlets will remain dedicated solely to organic items.
Enrichment Insights:
Changes in store offerings across different locations include a reduction in the overall organic assortment, although 100% organic sections such as the bakery and the butcher's remain. Some locations, like the teGut Bogenhausen store, continue to maintain its organic butcher's and bakery sections, allowing customers to discover premium organic products.
During this transitional period, teGut is evaluating whether 100% organic supermarkets will become a staple within their concept, exploring potential long-term implications for their organic offerings.
