Building and technical trade strategy

Result in building and technical trade to a new level in 2020

K Group’s building and technical trade division is the leading operator in Northern Europe. Despite the exceptional circumstances, we continued the execution of our country-specific strategies in 2020, and the division’s profitability rose to a new level. The Covid-19 pandemic and related restrictions impacted our operations across Northern Europe. With people working from and spending more time at home and spending money domestically, consumer demand grew, especially in Finland, Sweden and Norway. Sales stayed at a good level also in B2B trade, as most construction sites remained open as usual.

The key to our strategy execution is to acknowledge the differing needs of our three customer segments – technical professionals, professional builders, and consumers – in all channels. B2B operations account for nearly 70% of our net sales. Less than half of our profit improvement was attributable to the construction and renovation boom caused by the pandemic. We have also sought synergies within and between the operating countries in areas such as concept, digital service and own brand development. In 2020, we continued targeted acquisitions in line with our strategy in Norway and Sweden, as well as the integration of previously acquired businesses.  

Business environment

• Market consolidation
• Outsourcing of construction to professionals
• Growth in renovation building
• Non-traditional players entering the market
• Digital becoming increasingly important for the customer journey

Building and technical trade net sales, operating profit and operating margin, rolling

The building and technical trade strategy review can be read in Kesko's 2020 Annual Report. 

Information on the impacts of the Covid 19 pandemic on Kesko’s businesses can be found under the Operating environment section.