Decline of K-food stores' market share is levelling out

KESKO PRESS RELEASE 31.03.2015 AT 10.00 1(1)

The research company A.C. Nielsen today published information about market shares in the Finnish grocery trade. The information is based on 2014 figures. On the basis of the end of 2014 and the beginning of 2015, it seems that the decline of K-food stores' market share is levelling out.

According to Nielsen's report, K-food stores' market share for 2014 fell by 0.9 percentage points and was 33.1%. Nielsen's information is based on full year figures for 2014. At the end of last year, the prices of hundreds of products at K-food stores were reduced and price reductions were continued at the beginning of 2015.

- In the light of the latest figures for the end of last year and the beginning of this year, it seems that the decline of K-food stores' market share is levelling out and a change for the better can be seen, says Kesko Food's Vice President for Commerce, Ari Akseli.

The latest food price comparisons also prove that K-food stores' price level is competitive when comparable products and shopping places, or products in customers' real-life shopping baskets are compared.

- A 0.9 percentage point loss of market share for the whole of last year is a fact. However, it is a pleasure to see that our customers seem to appreciate K-food stores' operating model which is based on both price and quality, selection and service, says Akseli.

Consumer surveys also speak for the importance of both price and quality. A recent survey by the Association for Finnish Work shows that price is not the most important criterion for more than every fourth Finnish consumer shopping for food. Equally important criteria are, for example, the origin, taste and healthiness of food.

Further information is available from Ari Akseli,Vice President for Commerce, Kesko Food Ltd, tel. +358 105 323 490 and Lauri Peltola, Senior Vice President for corporate responsibility, communications and stakeholder relations, Kesko Corporation, tel. +358 105 322 400.

Kesko's sales release in February 2015: http://www.kesko.fi/media/uutiset-ja-tiedotteet/porssitiedotteet/2015/keskon-myynti-helmikuussa-2015-paivittaistavarakaupan-myynti-ennallaan-rauta--ja-erikoiskauppa-kasvatti-myyntiaan-suom/

The Finnish Grocery Trade Association (PTY): Grocery sales in February 2015: http://www.pty.fi/ajankohtaista/myyntitiedotteet/uutinen/article/paivittaistavaroiden-vahittaismyynti-laski-helmikuussa-06-prosenttia-edellisvuodesta/

K-food retailers, with whom Kesko's grocery trade applies the chain business model, are responsible for customer satisfaction at more than 900 K-food stores. K-food store chains include K-citymarket, K-supermarket, K-market and K-extra. K-food stores are the world's most responsible stores in their sector. Their strengths also include superior fresh food departments, competent service, the widest selections, Finnish products and Pirkka. K-food stores are both high-quality and low-priced. Discuss with us: #sekäettä