Tegut has said that sustainability measures such as 'packaging-free purchasing' at its service counters, and the introduction of cardboard trays for its meat products, helped boost footfall and sales in its financial year 2019.
The Fulda, Germany-based group posted a 3.3% increase in net sales for the year, to €1.07 billion, up from €1.035 billion the previous year.
'On The Right Track'
"With our strategy to offer consumers good food with a focus on freshness, organic and regional products, we are on the right track," commented Tegut managing director Thomas Gutberlet. "The renewed increase in sales shows that customers fully support us in the continuous further development of our sustainability strategy, and put their trust in us."
Organic products accounted for 28% of total sales last year, according to the retailer, which last year introduced a new concept to its stores, 'Unverpackt-Regal', or 'Unpacked Shelf'.
Here, a total of 144 food types, from rice to cereals to legumes, can be purchased by consumers who bring their own containers from home, or via compostable paper bags.
Gutberlet added that the retailer was eager to introduce further sustainability measures to its stores this year.
Organic Bakery
Tegut's organic bakery brand, Herzberger, which was integrated into the group in 2017, also had a positive year, with sales up 13%.
The retailer is planning a new 'multi-million euro' investment in the bakery brand for 2020, to build its distribution channels to organic retailers outside of the Tegut network.
New Stores
Tegut opened seven new outlets in 2019, in Dillenburg, Fürth, Heidelberg (2), Stuttgart, Schwäbisch-Gmünd and Frankfurt am Main, while a further seven were revamped and are expected to open soon. As of year end, the group boasted 275 stores across its network.
"We want to continue growing this year and opening new branches," commented Gutberlet, adding that the company is focusing its efforts on the southern states. "A total of ten new openings are planned so far."
This summer will see the opening of the first Tegut store in Munich city centre, while new supermarkets are also set to open in Aschaffenburg, Erbach, Mainz, Schwäbisch-Gmünd, Erlangen and Offenbach, among others.
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.
