"K Group’s position in the Finnish grocery trade market is strong. We have the widest network of food stores in the country with the most extensive coverage, and the work to transform the store network will continue in 2018. We offer the most inspiring food stores in Finland, tailored to the needs and wishes of our customers. We are constantly developing our digital services to ensure effortless shopping for our customers also online.”
Ari Akseli, Executive Vice President, grocery trade
What we are doing
|Grocery trade in figures|
|Number||Sales (pro forma) (VAT 0%)*,
|Retail sales and number of stores||2017||2016||2017||2016|
|K-Citymarket, home and speciality goods||81||80||587||575|
|K-Market, own retail trade***||157||545||459||768|
|Grocery trade, retail sales||5,916||5,880|
|Grocery trade, total||1,282||1,448||6,745||6,670|
|*The pro forma comparatives have been calculated to illustrate a situation in which the 2016 acquisition (Suomen Lähikauppa) and divestments (grocery trade operations in Russia) would have been completed on 1 January 2016.|
|** Incl. online sales|
|*** Number of Suomen Lähikauppa's stores was 400 (563)|
|Grocery trade, key figures||2017||2016|
|Net sales||€ million||5,282||5,236|
|Operating profit||€ million||181.3||93.0|
|Comparable, operating profit||€ million||203.4||175.9|
|Comparable operating profit as percentage of net sales||%||3.9||3.4|
|Capital expenditure||€ million||224||238|
|Capital employed, average||€ million||791||828|
|Comparable return on capital employed||%||25.7||21.3|
|Owned properties, capital||€ million||649||524|
|Owned properties, area||1,000 m2||420||377|
|Leased properties, lease liabilities||€ million||2,007||2,101|
|Leased properties, area||1,000 m2||1,594||1,684|
K-Citymarket is a modern and affordable hypermarket that offers its customers diverse, extensive selections of food and home and speciality goods. Our service counters offer the best food expertise in Finland. The K-Citymarket chain comprises 81 stores.
K-Supermarket’s mission is to inspire Finns to eat better, and be the number one choice for customers who are passionate about food. K-Supermarket’s strengths lie in quality, providing new food ideas, an extensive and current selection, local products, and customer service. There are 235 K-Supermarkets.
K-Markets are personal, service-oriented, genuinely local neighbourhood stores – the village stores for the modern age. K-Markets offer their customers diverse selections of food and local services to conveniently suit their everyday lives. The K-Market chain has more than 800 stores and the most extensive network of neighbourhood stores in Finland.
The extensive network of Neste K service stations offers customers restaurant quality food and personalised high-quality services quickly and conveniently. The network currently comprises 71 service stations. Our goal is to establish a network of one-hundred new type of Neste K service stations by the end of 2020.
Kespro is the leading Foodservice (previously HoReCa) provider and wholesale company in Finland. Kespro acts as a partner to its customer companies and municipalities in Finland and offers its customers a diverse range of food procurement solutions, as well as delivery and collection services. The selection includes fresh foods, processed foods, specialty goods, wine and alcohol.
In 2017, the Finnish grocery trade market was worth approximately €16.9 billion (incl. VAT), representing an increase of approximately 1.7% (Kesko's own estimate). The growth of the overall market was affected by, among other things, the deregulation of store opening hours and improved consumer purchase power. Price competition in the Finnish grocery market has continued to be tight. However, consumers also increasingly value food that is produced in Finland and is healthy and flavourful.
The market share in Finland is approximately 37.2% (Kesko's own estimate).
Competitors: Prisma, S-market and Alepa/Sale (S Group), Lidl, Stockmann, Tokmanni, Halpa-Halli and M-chain shops.
Market share cannot be reliably calculated.
Competitors: department stores, hypermarkets, discounters, specialist chains and online stores.
The market share is estimated to have strengthened to approximately 41% (Kesko's own estimate, based on new peer group and the Finnish Grocery Trade Association’s Foodservice wholesale market size as of the start of 2017).
Competitors: Meira Nova, Metro-tukku, Heinon Tukku, Suomen Palvelutukkurit.