Business models

Together, Kesko and K-retailers form K Group, whose retail sales totalled approximately €14 billion in 2020. K Group is the biggest trading sector operator in Finland and one of the biggest Northern Europe. Our chain operations comprise some 1,800 stores in Finland, Sweden, Norway, Estonia, Latvia, Lithuania and Poland.

Kesko's net sales by business model

Kesko’s principal business model in Finland in grocery trade and DIY trade is the chain business model, in which independent K-retailers run retail stores in Kesko's chains. Sales to retail entrepreneurs accounted for approximately 49% of Kesko’s net sales in 2020. Car trade is Kesko's own retailing.

B2B trade is a significant, growing part of Kesko’s business operations. B2B trade include i.a. foodservice and technical trade.

Outside Finland, we mainly engage in own retailing and B2B trade. Net sales from international operations totalled some €1.5 billion in 2020, representing 15% of our net sales. 

 

Differentiation from competitors

We focus on quality and customer orientation to differentiate ourselves from the competition, from store services to digital services.

Kesko is responsible for the continuous development of the operating model and store concepts, for steering chain operations, for procuring products included in chain selections, and for the store site network.

K-retailer entrepreneurs are responsible for their stores' customer satisfaction, personnel and business success and profitability. Each retailer establishes a business idea that differentiates their store from competition and consequently creates added value. Our multi-store model offers synergies in management, personnel resources and stocking.

 

Kesko's value creation chart illustrates how Kesko’s operations create value for its stakeholders and society.

 

Further information

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