UGAL - the Union of Groups of Independent Retailers of Europe - held its Annual General Assembly in Helsinki on 25-26 May 2011. Participants from various European countries had a lively discussion on many issues, including e-commerce and EU regulation. The wide scope of Kesko's activities and its chain stores made an impression during the store tour.
The Assembly gathered some 30 representatives from various parts of Europe. The photo was taken in front of the 'Expectation' sculpture before transfer to the cruise boat.
Special theme of the assembly was e-commerce
According to Dr. Peter Hampl, President of UGAL, the Union will keep a particularly close eye on the discussion concerning the proposed directive on consumer protection. The proposal includes several new provisions which will have an impact on e-commerce. UGAL considers it very important that the proposed regulation relating to product and purchase price returns will not increase the risk of malpractice.
Tara Buckley, Director General of RGDATA from Ireland, Mats Munther, SVP Business Development of ICA from Sweden, Fabrice Filleur, Director General of Euronics from France, and Ari Ojansivu, Industry Head, Retail of Google Finland also addressed the audience on the topic of e-commerce.
Denis Labatut, Secretary General of UGAL, described the situation of e-commerce in France. Matti Halmesmäki, Kesko's President and CEO, presented Kesko's operations, e-commerce projects and investment plans. The languages of the assembly were German, English and French.
Strict restrictions on commerce are against consumer interests, too
Kesko and K-retailers consider it important that no increasingly strict limitations or sanctions are set on trading sector operators by the EU or Finnish legislation. Such development would be against the interests of consumers.
According to Kesko's President and CEO Matti Halmesmäki, a nationwide examination of market shares in the grocery trade does not give the right picture of the competitive situation, as the 932 independent K-food retailer entrepreneurs of the group also compete against each other locally every day.
"Current market shares have been achieved through keen competition which will remain so. Every operator has to bear responsibility for its own productivity and competitiveness. This is the only way to ensure the future of the Finnish food production," said Halmesmäki.
Read more in Kesko's press release.
Kesko has been a member of UGAL for decades
UGAL, based in Brussels, was established in 1963. Kesko has been a member since the 1970s. UGAL represents over 300,000 independent European retailers, who run a total of more than 500,000 sales outlets in the EU area. The retailer groups employ over five million people.
UGAL's member organisations include ICA (Sweden), Intersport International, Edeka (Germany), Expert International, Euronics International, Spar International, and CONAD (Italy). Further information: www.ugal.eu.
Anne Leppälä-Nilsson, Kesko's General Counsel, has been a member of the UGAL Board since 2007.
"Most of the regulation affecting the operations of the trading sector comes from the EU. It is important to be there to exert influence and also to get information on future provisions. It remains to Finland to just implement the European regulation with no opportunity to make changes," said Anne Leppälä-Nilsson.
The tour offered a fine cross-section of K-Group stores
In connection with the assembly, Kesko arranged two store tours for those interested - 16 visitors in all. During the intensive 3.5-hour tour, the participants had a chance to see stores representing nearly all Kesko's product lines. Visitors were received with enthusiasm and heard presentations given by retailers, department store directors and store managers in English and even in German.
Ismo Penttinen, retailer of K-rauta 75, speaks and Denis Labatut, UGAL's Secretary General, Peter Hampl, UGAL's President, and Ralf Gerking, EDEKA's Verbandsdirektor listen. Pekka Soikkeli, Sales Director of Konebox, discussed on home electronics with Klaus Lahrmann, Managing Director of Euronics.
Discussions during the store tour revealed that many things in the retailing sector are common regardless of the country. Swedish consumers also want to buy organic and local food and are interested in the origins of products and working conditions in the countries of manufacture. Elisabeth Due, ICA's Head of Public and Policy Affairs, said that the home delivery service that is now tested by ICA is very popular. Products are ordered online and delivered to customers' homes, recipes included.
Pekka Lintumäki, Retailer of K-citymarket Tammisto, told the visitors about his hypermarket, opened in April. Listening also Kesko's translator Taija Mäentaka. All were impressed by the store's tidiness, wide and well-lit aisles, fruit and vegetable department and huge selections. According to Pekka Lintumäki, they stock as many as 1,500 different cheeses.