German retailer Tegut has posted a group net sales increase of 2.7% in full-year 2018 to €1.04 billion.
The retailer said that productivity per square metre increased by 1.9% last year, with customer numbers up by 2%.
The share of organic products sold in its stores rose to 26.0%, up from 25.4% a year earlier, while Tegut also sold more fair trade products and locally-grown food in its stores during the period.
"Our strategy of offering consumers good food with a focus on freshness, organic and regionality has paid off successfully in 2018," said Thomas Gutberlet, managing director, Tegut. "It also shows that we are on the right path with our course for sustainable management and growth."
Store Count
The group opened six new stores last year, in Frankfurt, Mainz, Fellbach-Schmieden, Weimar, Stuttgart and Waiblingen, with six smaller outlets closed int he same period.
The number of Tegut outlets stood at 273 as of the end of 2018, with Gutberlet saying that the group intends to grow its store count this year, particularly in the southern federal states of Germany.
It plans to open a new store in February, in Kaiserpassage in the middle of Frankfurt, while in the summer the first store in Schwäbisch-Gmünd is set to open, and in the autumn, two outlets will be introduced to Heidelberg, as well as new stores in Fürth and Erlangen.
Bakery Rollout
The group said that its Herzberger bakery showed 'positive developments' in the full-year, with the rollout of baking stations to Tegut stores increasing by 8.3% last year.
At its Fulda bakery location, Tegut invested around €1 million in the development of a new biscuit line, as well as on modern packaging technology for frozen products.
Last year also saw Tegut roll out a 'packaging-free shopping' concept at selected service counters last year, with customers encouraged to bring their own packaging when purchasing meat, sausage, cheese, fish and antipasti.
Elsewhere, Tegut said that its cooperation with Amazon, whereby some 5,200 items are available on the online platform, including 2,000 organic foods, is progressing well.
"Amazon helps us find new customers," Gutberlet added.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.
