Tengelmann plans to do a complete make-over of all its 700 stores in Germany following the successful conversion of the first 75 to new livery and interior design and its focus on fresh produce.

In the new stores, the drab-and-dated red and beige corporate colours on the outside have been replaced by red, gold and black, the colours of the German flag. On the inside, tiled walls have been replaced by bright coloured wall panels and posters. Its new product positioning is on fresh, local, organic and Fair Trade produce.

60% of the product range is fresh with 40% dried. Also, the number of staff employed within the store has been increased by 10% to give customers more service. The result is that the new stores are showing double digit growth.

"This has been repaid by the 10% growth experienced by the 30 stores in Munich which have already been converted. The increased focus on fresh is reaping higher margins," said regional manager Peter Koch.

Tengelmann concentrates on its regional strength in four core regions: Nordrhein; Berlin/Umland/Rhein Main-Neckar and Munich/Oberbayern. Its priorities lie in converting stores in Hamburg and Munich. 30 stores have been converted in Munich and the plan is to convert all its 210 stores by 210.