Expansion Stop for Tegut "Teo" Branches in Hesse

The Fulda-based supermarket chain Tegut has temporarily put on hold its expansion plans for the understaffed "Teo" stores after legal difficulties concerning Sunday work. A court ruling that confirmed the legality of closing the stores on Sundays prompted a reassessment of site profitability in the Hessian region, according to the company. The innovative self-service "Teo" market, which maintains contact with customers through digital technology, remains the focus of the company's strategy. The Hessian court ruling classifies "Teo" stores as retail outlets that must also comply with the Shop Opening Hours Act. As a result, Sunday openings are largely prohibited, with markets located near train stations being an exception. The Tegut spokesperson emphasized the importance of Sunday revenues, which account for up to 30 percent of the weekly turnover at some locations. However, the Hessian state government plans to create a legal solution that would allow small digital markets to open on Sundays – a development that could offer new prospects for the supermarket chain. The flexibility and revenue strength of the "Teo" markets are now reduced, according to the spokesperson, mainly due to the loss of Sunday sales. Despite the current challenges, the company, with its 39 existing locations across three federal states, is determined to set the course for the future. Other companies are following the trend towards smart store concepts, including Rewe with the "Nahkaufbox" or "Tante EM," indicating high dynamism in the industry. Tegut sees the announced political support as the foundation for further expansion plans and is therefore sticking to its innovation concept.