Kesko
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Native name | Finnish:Kesko Oyj Swedish:Kesko Abp |
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| Company type | Julkinen osakeyhtiö |
| Nasdaq Helsinki:KESKOB | |
| Industry | Retail |
| Founded | 1940 |
| Headquarters | , Finland |
Key people | Jorma Rauhala(PresidentandCEO),Esa Kiiskinen(Chairman) |
| Services | Supermarketsandhypermarkets,hardwareretail,autosales,department stores,consumer durables |
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| Total assets |
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| Total equity |
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Number of employees | 22,476 (average, 2016) |
| Website | www.kesko.fi |
| Footnotes / references [1][2] | |
Kesko Corporation(Finnish:Kesko Oyj,Swedish:Kesko Abp) is aFinnishretailingconglomeratewith its head office inKalasatama,Helsinki.[3]It is engaged in the grocery trade,buildingand technical trade, andcartrade. It also has operations inSweden,Norway,Denmark,Estonia,Latvia,Lithuania,andPoland.
History
[edit]Kesko was formed when four regionalwholesalingcompaniesthat had been founded by retailers were merged in October1940.[4]
The new Keskocompanystarted operating at the beginning of1941.The need to purchase goods for theshareholder-retailers and to support their business operations and startcooperationamong them resulted in the forming of the K-retailer group.
By the end of the 1940s, Kesko's sales amounted to about 15 billion oldFinnish markkas(equivalent to EUR 580 million in 2010), which was about 12% of the overall sales of the central companies operating in the Finnish trading sector.
Divisions
[edit]Grocery trade
[edit]
Kesko's grocery trade division is a key operator in the Finnishgrocery trade.The division's main functions include the centralisedpurchasingofproducts,selection management,logistics,and the development of chain concepts and the store network.
The division's grocerystore chainsare K-Market,K-SupermarketandK-Citymarket.In 2021, the chains comprised 1,200 grocery stores, run by some 1,000 independent K-retailers. Over 500 of the stores also offered online grocery sales services.[5]Approximately 50% of Finns live less than a kilometre away from a K-food store.
Formerly Kesko called these four size-grades of their shops K (small), KK (middle-sized), KKK (large), and KKKK (largest),[6]and the chain names were K Extra, K Lähikauppa (= "local shop" ), KK Market, KKK Supermarket and KKKK Citymarket; but this naming system has been changed.
Kesko's groceryprivate brandsincludePirkka,Pirkka Parhaat and K-menu.
The main competitors arePrisma,S-market andAlepa/Saleof S Group,M chainstores, andLidl.
Kesko company Kespro is the leadingwholesalerin the FinnishHoReCabusiness.
Kesko also has smallconvenience stores,cafes and restaurants which operate at staffedservice stationsofNesteoil corporation. These service station facilities are branded as Neste K. The convenience store is virtually always found in Neste K station, while whether the station has a cafe or restaurant depends on the size and location of the station. Cafes are branded as Koon Kahvila and restaurants as Koon Keittiö.
K-citymarket's home andspeciality goodstrade is part of the grocery trade division.
Building and technical trade
[edit]Kesko's building and technical trade division operates in Finland, Sweden, Norway, Estonia, Latvia, Lithuania and Poland. Its chains areOnninen,which serves technical professionals, and K-Rauta, Byggmakker and K-Bygg, which serve both professional builders and consumers.
The division's main functions include the centralised development of chain selections, centralised purchasing and logistics, and the development of chain concepts and the store network.
K-Rauta and Intersport stores in Finland are operated by retailer entrepreneurs. The internationalbusiness modelcombines the category management, purchasing, logistics,information systemcontrol and network improvements of the company's chains which operate in different countries.
Car trade
[edit]The car trade segment consists ofK-Auto(formerly operated as VV-Auto).
- K-Auto imports and marketsVolkswagen,Audi,Porsche,Cupra,SEATandBentleypassenger cars and Volkswagencommercial vehiclesin Finland. Kesko’s own outlets and independent dealers sell new and used cars and offer servicing and aftersales services at 71 locations across Finland.[5]The division'sK-Latausnetwork offerselectric vehiclecharging facilities at K Group store locations around Finland.
K-Auto represents the leadingbrandsin their market area and are responsible for the sales and after-sales services of these brands either through their own ordealer network.The dealer network is complemented by a network of contract service centres.
The division also comprises leisure trade and the chainsIntersportand Budget Sport.
Market share and competitors
[edit]In 2014, Kesko's market share in food trade in Finland was 33.1% (Nielsen). At that point, Kesko's competitors in food trade in 2014 wereS Group(45.7%),Lidl(7.6%),Suomen Lähikauppa(6.8%), and M chain stores (Nielsen). Kesko later acquired Suomen Lähikauppa in 2016 and the deal increased Kesko's share of the market to about estimated 40%.[7]
In 2019 Nielsen report, Kesko's market share in grocery trade was estimated to be 36.5%.[8]
Acquisition of Suomen Lähikauppa
[edit]
In April 2016 Kesko completed the acquisition of a competitor Suomen Lähikauppa's stores. In the deal, Kesko acquired all the Valintatalo and Siwa stores. However theFinnish Competition and Consumer Authority(FCCA) approved the acquisition with a condition that Kesko must sell at least 60 of the stores to competitors. All the Siwas and Valintatalos have been rebranded as K-Market stores as of 2017.[9]The total number of stores owned by Suomen Lähikauppa before the acquisition was 643 and it employed 4100 employees.[10]In the same acquisition Kesko also was initially obligated to keep using Tuko Logistics Cooperative as the main supplier for the bought stores for 18 months, but FCCA later revoked this decision on appeal.[11]
Notable changes in company structure
[edit]Retail chain closures
[edit]- Musta Pörssi home electronics retail chain[12]
- Kookenkä andThe Athlete's Footshoeretailers[13]
Sales of retail chains
[edit]- Anttila[14]
- Asko and Sotka furniture retail chains[15]
- Kodin1[14]
- Konekesko, a service company specialising in the import, marketing and after-sales services of recreational machinery,constructionandmaterials handling machineryandagricultural machinery.Kesko divested Konekesko operations in 2018-2020[16]
References
[edit]- ^"Avainluvut".Retrieved22 September2018.
- ^"KESKOA, Kesko Oyj A, (FI0009007900) - Nasdaq".www.nasdaqomxnordic.com.Retrieved22 September2018.
- ^"Contacts/Kesko Corporation."Kesko. Retrieved on 11 July 2021." Työpajankatu 12 "
- ^Iain (1 November 2006)."Kesko".FoodChain Magazine.Retrieved16 February2023.
- ^abKesko Annual Report 2021kesko.fi
- ^"Finland for Thought » Which Finnish grocery store should I choose? | Politics, current events, culture - in Finland & the United States | Blog of an American living in Finland".Archived fromthe originalon 23 September 2015.Retrieved23 September2015.
- ^"Archived copy".Päivittäistavarakauppa ry. Archived fromthe originalon 14 February 2017.Retrieved13 February2017.
{{cite web}}:CS1 maint: archived copy as title (link) - ^"Päivittäistavarakaupan myynti ja markkinaosuudet 2019"(in Finnish).Retrieved22 November2020.
- ^"Kesko has completed the acquisition of Suomen Lähikauppa - Siwa and Valintatalo stores to be converted into K-markets".Retrieved22 September2018.
- ^"Kesko ostaa Suomen Lähikaupan - Siwat ja Valintatalot siirtyvät suomalaisomistukseen - Talouselämä".Archived fromthe originalon 14 February 2017.Retrieved13 February2017.
- ^"FCCA removes Tuko-related conditions from Kesko Food and Suomen Lähikauppa merger decision".Kilpailu- ja kuluttajavirasto.Retrieved22 September2018.
- ^Musta Pörssi to wind up operationsKesko website. Retrieved on 6 June 2019
- ^"Kesko keskittyy vapaa-ajan kaupassa urheilukauppaan – The Athlete's Foot, Kookenkä ja Kenkäexpertti -liiketoiminnat lopetetaan vuoden 2021 aikana".www.kesko.fi(in Finnish).Retrieved3 October2022.
- ^abKesko myy Anttilat saksalaisilleYle. Retrieved on 23 September 2021
- ^Kesko has completed the divestment of Indoor Group Oy responsible for Asko and SotkaKesko website. Retrieved on 6 June 2019
- ^"Danish Agro Group assumes ownership of Konekesko's Baltic subsidiaries".www.kesko.fi.Retrieved3 October2022.
External links
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