Strategy, vision, value
We are building our business portfolio with focus and increasing customer value. The basis of our strategy work is quality and efficiency, continuous improvement of the multichannel customer experience, K-retailer entrepreneurship, and responsibility in all our operations.
Vision
The leading and most attractive trading sector company in Northern Europe.
Purpose
Towards better trade every day - customer and quality in everything we do.
President and CEO Jorma Rauhala:
“In summer 2024, we updated Kesko’s strategy, keeping the main pillars intact, while crystallising further the competitive advantages and objectives of the three divisions: grocery trade, building and technical trade, and car trade. Sustainability is a central part of Kesko’s strategy, and we have engaged in sustainability work for decades.
In all business operations, we seek sales growth, better customer experiences, profitability and efficiency with the help of e.g. digital services and artificial intelligence. I see plenty of potential for all three divisions to grow and further strengthen their businesses especially by listening to their customers and responding to customer needs. I feel that it is important to motivate our people through open and honest communication about our goals, and to support them and give them enough responsibility in everyday decision-making. Together, we work towards better trade everyday with a “Let’s K” attitude,” says Kesko’s President and CEO Jorma Rauhala.
Summary
- Due to uncertainties in the operating environment, our strategy this time has a shorter time frame, covering the years 2024-2026.
- Our business portfolio is set to remain stable, with focus on the three core divisions. The focus is on maintaining and further developing current businesses.
- Targeting growth and profitability improvement as outlook strengthens in construction in 2025-2026.
- In grocery trade, focusing on maintaining profitability and gaining market share. Raising the level of store-specific business ideas, developing the store site network, and improving price competitiveness as main focus areas. Further strengthening Kespro’s market-leading position.
- In building and technical trade, focusing on securing profitability and generating cash flow. Finland continues winning over market share, Sweden and Norway will focus on integrating past acquisitions and driving profitability. Organic and M&A growth in Denmark.
- In car trade, continuing with growth strategy in new cars, used cars and services. Outperforming the market in all businesses.
- Highlighting the importance of people and culture.
- Balance sheet moderately leveraged.
Read more:
Kesko organised an investor event on Tuesday, 4 June 2024. At the event, President and CEO Jorma Rauhala and other members of Kesko’s top management presented the company’s updated strategy and focus areas for the three business divisions. The event was held in English. Watch the recording and related materials here.
Strategy review in Kesko's Direction section of the Annual Report
