Frontpage The Group K-retailer career

Competitive advantage from chain operations and K-retailer enterprise

The K-Group’s principal business model in Finland is the chain business model, in which independent K-retailers run retail stores in the chains managed by Kesko. At the end of 2009, Kesko had 1,302 K-retailer entrepreneurs as partners, as well as about 250 other retailer partners.

Cooperation between K-retailers and Kesko – chain operations – is based on equality, openness and willingness to develop joint operations. The objective of chain operations is improving competitiveness and customer satisfaction combined with achieving higher, uniform quality and lowering costs.

The obligations and rights of K-retailers and Kesko have been specified in the chain agreement.

Competitive edge is gained by combining systematic chain operations and the K-retailer operations based on entrepreneurship. Kesko is responsible for the constant development of the business model and the store concepts, for chain operations management and for sourcing and purchasing of the products included in the chain selections. The K-retailer entrepreneur is responsible for his or her store’s customer satisfaction, personnel and profitability of business.

To ensure success, it is important that a new retailer’s professional and other skills are at as high level as possible at the start of his/her career. About 200 stores are affected by retailer changes annually in the K-Group. The annual need for new entrepreneurs, ready to start their K-retailer careers, is approximately 100. The K-Group systematically trains new retailers to ensure a sufficient supply of people with the appropriate professional skills. New candidates interested in a K-retailer career are sought through different channels. There are about 500 contacts annually. The requirement for new retailers is estimated for 1–3 years ahead.

The K-retailer trainee programme offers three alternative paths: a comprehensive programme, an intensive programme and the retailer entrepreneur path in polytechnics. Approximately 50% of those starting the programme have a fair amount of retailing experience, but in recent years the number of students transferring from other fields or having just finished their general education has grown. Before selection to the K-retailer trainee programme, the applicants are evaluated with regard to their development potential, values, work experience and education. After selection, would-be K-retailers start the K-retailer trainee programme, which consists of three parts: practical training in a retail store under the guidance of a mentor, theoretical training at the K-instituutti training centre or in the online learning environment, and regional K-trainee seminars.

Approximately 100 K-retailer trainees complete the programme every year. After completion, the trainees are ready to start as independent K-retailer entrepreneurs.

The K-Group gives its retailers strong background support and opportunities for further training and progress in their careers

Path to K-retailer career