We continue our strategy execution
Kesko has a strategy that has proven effective: it seeks profitable growth through focus and transformation. The trading sector and our operating environment are changing rapidly. For an agile and constantly evolving operator, this poses opportunities. The results we have achieved so far act as strong proof that we have made the right strategic choices and that our strategy works well also in a rapidly changing post-pandemic market.
Grocery trade, building and technical trade, and car trade are all businesses in which Kesko has good market positions and the strongest capabilities, and they offer the best potential for long-term development. We use quality and customer experience to differentiate ourselves from the competition in both our stores and digital services.
Digitalisation and customer experience are two complementary central themes in Kesko’s strategy. Kesko’s key objectives in utilising digitalisation are to enable the best possible customer experience and to increase the efficiency of our operations and consequently our cost-efficiency. Data is central to all our operations, and we seek to create value in various ways for our customers with business processes that utilise data, analytics, AI and automation.
K-Plussa is the most extensive and versatile customer loyalty programme in Finland. The number of Finnish households belonging to the K-Plussa loyalty scheme and using the Plussa network totalled 2.4 million at the end of December 2022, with 3.3 million active customers.
‘One unified K’ is an important part of our strategy. K Group, which at its core comprises Kesko and independent retailer entrepreneurs in Finland, today operates in eight countries. The retailer entrepreneurs lend Kesko a significant competitive advantage, and we employ the retailer business model whenever it gives us a competitive edge. We want to maintain and strengthen our reliable K brand, and to provide even better service to our customers. In addition to a common strategy, operating as ‘One unified K’ means seamless cooperation with retailers and across business divisions to achieve synergies.
Kesko’s sustainability strategy was updated in spring 2022. The strategy sets clear sustainability targets for the operations of Kesko and its three divisions, focusing on climate and nature, value chain sustainability, people, and good governance. With climate and nature, Kesko focuses on reducing emissions from its own operations and in the whole value chain. We aim to reach carbon neutrality by 2025, and to cut our emissions to zero by 2030. In the value chain, we emphasise responsibility and sustainability in our whole purchasing chain. With people, Kesko focuses on employee safety and wellbeing and on fostering diversity, inclusion and equal opportunities for its personnel. Key aspects to ensure good governance include the implementation of the K Code of Conduct, and building stronger sustainability competencies among employees.
Strategy review in Kesko's Direction section of the 2022 Annual Report