Organic Share of Tegut Sales Decreases
Customers in Germany do not save on holidays, but on shopping. The Supermarket Chain Tegut comes to this conclusion, and less and less organic food is purchased. Supermarket chain Tegut sensed consumer reluctance towards organic food last year.
During total net sales of 1.25 billion euros, the organic share of revenue decreased to 28.4%, the company said in Fulda. The previous year, Tegut achieved the highest membership share in its 75-year history at 30.5%.
GMs: Buy Organic Variants for Cheaper Customers
Managing Director Thomas Guttberlet says:
"This is consistent with the current development whereby customers are not saving on vacations, for example, but on everyday life."
Cheaper brands will be purchased more often than more expensive products. “This also applies to membership: the customer continues to buy green variants, but cheaper.”
Along with fruit and vegetables, the supermarket chain has the highest shares of organic products of all product groups except bread. “If less fruit and vegetables are purchased, the organic turnover also decreases. »
Tegut on Expansion Cycle
In addition to the online business, where Tegut works with Order Amazon, the supermarket chain has also expanded its business with “Teo” convenience stores. At the same time, with 26 sites in Hesse, Bavaria and Baden-Württemberg, another 15 to 20 should be added this year with a focus on the Rhine-Main region and Baden-Württemberg.
New supermarkets and a drinks market have been added over the past year, so the food retailer owned by the Swiss cooperative Migros now has a total of 315 markets of different retail concepts, with more to open in 2023. In order to be able to cope with the expansion cycle, Tegut also wants to open a new logistics center in Michels Rombach near Fulda.
At the moment, there are several new positions to be filled, around 800 people are expected to work on the site once completed. In total, around 7,600 people in the markets, central logistics and service centers in Fulda work for the company.
