Retail sector terms

AFTER-SALES MARKETING refers in car trade  to after-sales activities, such as maintenance, repairs, sales of spare parts, accessories and equipment.

BRAND is a trademark, logo or branded product. It is an embodiment of all information relating to the company product or service. A brand is an image, created by the way of doing things, by quality and the willingness to reach the set destination.

CHAIN AGREEMENT is a contract between the retailer and Kesko that enables the retailer join one of Kesko’s retail store chains. Under the terms of the chain agreement, the retailer and Kesko agree on their rights and responsibilities regarding chain operations.

CHAIN CONCEPT is a comprehensive description of retail business operations and guidelines for their similar implementation in all stores of the chain.

CHAIN SELECTION in K Group is the part of a selection that is the same in all stores of the chain. The chain unit makes decisions concerning the selection.

CORPORATE RESPONSIBILITY refers to voluntary responsibility towards key stakeholders. It is measurable, based on the company’s values and objectives, and is divided into economic, social and environmental responsibility.

DEALER, for instance in the car trade, is a company authorised by the importer to sell and service branded products. The dealer meets the quality standards set by the manufacturer and the importer.

GROCERIES refer to food and other everyday products that people are used to buying when they shop for food. Groceries include food, beverages, tobacco, home chemical products, household papers, magazines and cosmetics.

GROCERY STORE is, in most cases, a self-service food store that sells the full range of the above groceries. Food accounts for about 80% of grocery stores’ total sales.

HYPERMARKET is a retail store selling a wide variety of goods mainly on the selfservice principle. Its sales area exceeds 2,500 m2. In a hypermarket, food accounts for about half of the total area, but sales focus on groceries (food and other everyday items).

K GROUP comprises K-retailers and Kesko.

K-RETAILER is an independent chain entrepreneur who, through good service, competence and local expertise, provides additional strength for chain operations. The K-retailer entrepreneurs are responsible for their stores’ customer satisfaction, personnel and profitable business operations.

K-RETAILERS’ ASSOCIATION looks after the interests and promotes the cooperation of the K-retailers. Its key function is to enhance and strengthen K-retailer entrepreneurship and promote the interests of its members. All the K-retailers are members of the K-Retailers’ Association.

LOGISTICS is a process in which information management is used to direct the goods flow and related services throughout the entire supply chain. Logistics help optimise the quality and cost-efficiency of operations.

NEW ESTABLISHMENT (greenfielding) refers to new store sites or business premises.

PRIVATE LABEL (own brand, house brand) product is a branded product made for the trading company by a manufacturer and marketed as part of a larger product family under one brand name. A company markets its private label products through its own network.

RETAIL TRADE refers to sales to consumer customers.

SALES AREA refers to the store area reserved for sales, such as goods areas, aisles, service counters, checkout areas and air lock entrances.

SELECTION is the range of products sold for the same purpose, for instance a selection of bread. Speciality stores carry a deep selection in the category.

SHOPPING CENTRE houses many trading companies, but has joint management and marketing. A shopping centre has one or more main companies, but no individual store accounts for over 50% of the total business premises. A shopping centre has a minimum of 10 stores, in most cases joined by a common mall.

STORE-SPECIFIC selections in K Group are the part of the selection of a store that is adapted for the special needs of the local market.

STORE SITE is a business property or premises where the chain concept and related auxiliary services are carried out.

SUPERMARKET is a grocery store that focuses on food sales and works on a selfservice principle. Its sales area is at least 400 m2, with food accounting for over half of the total sales area.

WHOLESALE trade is purchasing from suppliers in large quantities and then selling to enterprises engaged in the retail trade.

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