store sites and properties

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.

Kesko Group’s strategic store sites are properties that are or can be developed into large retail units. They involve important business interests related to the continuity of management, the flexibility of change and the financial value of the premises. In order to protect such interests, Kesko usually prefers to own these properties. In 2017, a total of 74% (2016: 64%) store sites were classified as strategic.

Standard properties are premises owned by Kesko Group, including large properties, without a significant development need, which can be sold and leased back for the Group's business operations. In 2017, there were 20% (2016: 28%) basic properties.

Realisation properties are Properties Kesko no longer has use for. 

Development properties are plots and properties that require development to fit their planned purpose.

Capital expenditure on 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.

Energy efficient construction and property maintenance

When a new store site or shopping centre is being planned and built, the starting point is sustainable development and energy efficiency. In maintenance and repairs, the starting point is also lowering lifecycle costs.

Store site projects involve major capital expenditure, the implementation of which requires skilled people, a high-quality network of cooperation and common rules. Kesko has long experience and plenty of competence in the implementation of demanding store site projects.

In order to indicate the high level of requirements, an international environmental classification, BREEAM or LEED, to be carried out by an external assessor is applied to the most significant store site projects.

It is important to keep an eye on developments in the building and energy sector and anticipate its changes. Technology advances rapidly, consequently development requires expertise to identify the right time to reject technology that is becoming obsolete and adopt technological advances and innovation.

Kesko is participating in the 2017–2025 action plan of the commerce sector's Energy Efficiency Agreement. In accordance with the agreement, we commit to reducing our energy consumption by 7.5% through various energy saving measures. All K Group chain stores are included in the agreement.

The measures include:

  • Solutions that decrease the consumption of materials and energy during the lifecycle of the property
  • The lowest lifecycle costs in the trading sector
  • Optimum conditions for customers, employees and products

Retail stores can achieve significant energy savings by adopting these energy efficient solutions:

  • Remote monitoring and building automation
  • Lids and doors on refrigeration equipment
  • Recovery of condensation heat
  • Refrigeration equipment that uses carbon dioxide
  • Adjustable and directional lighting
  • LED lights in neon signs
  • Increased use of LED lighting also inside the store
  • Solar power plants on store rooftops

Read more about store sites and properties:

Annual Report 2017

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