Markus Mosa, CEO of Edeka, announced that if Edeka takes over Tegut, the supermarket chain, he intends to retain all existing employees. Speaking to the “Focus”, Mosa stated that the goal is to maintain “all stores, including those locations that are economically particularly challenging” ensuring that every employee currently working there is taken on. He emphasized that this initiative is critical, both personally and for Edeka, particularly given Migros’s full withdrawal from the German market and the current general economic climate, adding that any job that can be saved is a win.
Edeka plans to absorb approximately 200 Tegut branches following Migros’s departure. However, the deal is contingent on approval from Germany’s Federal Cartel Office. Mosa stressed that the acquisition would create a “clear future perspective for the Tegut stores and their employees in the affected regions” promising to stabilize the locations economically, secure around 4,500 jobs, and maintain local supply for the community.
When confronted with criticisms that Edeka’s continued growth exacerbates market concentration and raises consumer prices, Mosa dismissed these concerns. He pointed out that food prices in Germany remain low compared to the EU average, while maintaining very high quality and variety. He asserted that this is not just a subjective perception of foreign shoppers, but an objectively proven fact recognized by the Federal Cartel Office. Furthermore, he contended that Edeka had presented actual data to the cartel office demonstrating that the company had not unduly benefited from the inflation within the food sector.
In a related critique, Mosa sharply criticized global brand conglomerates and suppliers, holding them responsible for rising consumer costs. He used the price development of major brand products versus private labels as an example. “To give a concrete example: the average price development for Nestlé chocolate products in this period is roughly 40 percent higher than our own brands” Mosa observed. He concluded by challenging the audience: “One must therefore ask who truly possesses the market power”.
Finally, the Edeka CEO appealed directly to the Cartel Office to make a swift decision regarding the Tegut acquisition. He expressed absolute confidence that the office understands the significance of the procedure for the future of Tegut’s workforce and suppliers, and ultimately for local consumers. While acknowledging the need for meticulous review, he noted that the alternative to Edeka acquiring the chain was obvious: the closure of local stores and the loss of jobs for thousands of people. Mosa concluded by urging the Federal Cartel Office to provide clarity from Bonn as quickly as possible for all those employed by Tegut and for everyone who wishes to continue shopping there.
