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Store sites

The store site network is a strategic competitive factor for K Group. It enables the development of our business operations as well as the improvement of sales and customer satisfaction, while also supporting online sales.

Our store sites are divided into four categories: strategic properties, basic properties, realisation properties, and development properties

Strategic properties:
  • Properties Kesko wants to own
  • In 2017, there were 74% (64%) strategic properties
  • Significant properties for business operations, for example, properties that are or can be developed into large retail units
Basic properties:
  • Properties Kesko owns but could sell and then lease back
  • In 2017, there were 20% (28%) basic properties
Realisation properties:
  • Properties Kesko no longer has use for
Development properties:
  • Plots and properties that require development to fit their planned purpose

Breakdown of owned properties, €

Capital expenditure in store sites

In 2017, Kesko’s total capital expenditure in store sites amounted to €256 million (€217m).

In terms of growth, key areas for capital expenditure are:

  • In the grocery trade, growing and modernising the K-Market network, and expanding the K-Supermarket network
  • In the building and technical trade, modernising the K-Rauta network in all operating countries
  • Investments in properties needed for or supporting Kesko's business operations

 

At the end of 2017, the most significant store sites under construction were:

  • Eight K-Supermarkets in Finland
  • One K-Rauta in Finland and one in Sweden, and two K-Senukai stores in Lithuania. Five Onninen Express stores are under construction in Finland.

Easton Helsinki shopping centre in Itäkeskus, a significant store site project for Kesko, opened to customers in October 2017. The capital expenditure is valued at around €100 million.

Owned store sites and properties
Book value by region, € million 2017 % 2016
Finland 817 77.3% 688
Other Nordic countries 40 3.8% 48
Baltic countries and Belarus 38 3.6% 33
Russia 162 15.3% 168
Total 1,057 100.0% 937
Area by region, 1,000 m2 2017 % 2016
Finland 618 68.8% 547
Other Nordic countries 59 6.6% 65
Baltic countries and Belarus 78 8.7% 105
Russia 143 15.9% 137
Total 898 100.0% 854
Book value by division, € million 2017 % 2016
Grocery trade 649 61.4% 524
Building and technical trade 329 31.1% 342
Car trade 53 5.0% 56
Others 26 2.5% 15
Total 1,057 100.0% 937
Area by division, 1,000 m2 2017 % 2016
Grocery trade 420 46.8% 377
Building and technical trade 393 43.8% 421
Car trade 47 5.2% 47
Others 38 4.2% 9
Total 898 100.0% 854
Leased store sites and properties
Area by region, 1,000 m2 2017 % 2016
Finland 2,407 73.2% 2,682
Other Nordic countries 199 6.1% 222
Baltic countries and Belarus 615 18.7% 555
Poland 58 1.8% 60
Russia 8 0.2% 8
Total 3,287 100.0% 3,527
Area by division, 1,000 m2 2017 % 2016
Grocery trade 1,594 48.5% 1,684
Building and technical trade 1,115 33.9% 1,251
Car trade 26 0.8% 23
Others 552 16.8% 569
Total 3,287 100.0% 3,527
Lease liabilities by region, € million 2017 % 2016
Finland 2,455 84.9% 2,698
Other Nordic countries 73 2.5% 92
Baltic countries and Belarus 350 12.1% 199
Poland 15 0.5% 6
Russia 0 0.0% 0
Total 2,892 100.0% 2,996
Lease liabilities, € million 2017 2016
No later than one year 382 400
Later than one year and no later than five years 1,273 1,326
Later than five years 1,237 1,269
Total 2,892 2,996