Building and technical trade strategy
In the building and technical trade division, Kesko will continue to strengthen its leading position in Northern Europe. The business division serves professional builders and technical wholesale customers as well as consumers. It strives to offer them a seamless customer experience in physical stores and digital channels. The division will continue to execute country-specific growth strategies, seeking growth both organically and via acquisitions.
Strategic focus areas
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
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STRATEGIC OBJECTIVE |
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WHAT WE ARE DOING |
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Building and technical trade net sales, operating profit and operating margin, rolling
Comparable operating profit
The building and technical trade strategy review can be read in Kesko's 2020 Annual Report.
| K Group’s building and technical trade | Number of stores |
Retail and B2B sales, |
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| 2020 | 2020 | Change, % | ||
| K-Rauta, Finland | 130 | 1,172.3 | 9.0 | |
| Rautakesko B2B Service | - | 249.1 | -2.5 | |
| Onninen, Finland | 57 | 961.4 | 8.2 | |
| Leisure trade, Finland | 103 | 264.2 | -5.9 | |
| Finland, total | 290 | 2,647.1 | 5.9 | |
| K-Rauta, Sweden | 17 | 186.3 | 14.1 | |
| K-Bygg, Sweden | 36 | 240.9 | 10.8 | |
| Onninen and MIAB, Sweden | 3 | 108.3 | -0.8 | |
| Byggmakker and Carlsen Fritzoe, Norway | 86 | 717.2 | 1.0 | |
| Onninen, Norway | 18 | 243.6 | -3.9 | |
| Onninen, Baltic countries | 17 | 79.9 | -5.7 | |
| Onninen, Poland | 36 | 235.1 | -1.3 | |
| Other countries, total | 213 | 1,811.4 | 2.0 | |
| Building and technical trade exl. Kesko Senukai, total | 503 | 4,458.4 | 4.3 | |
| Kesko Senukai | 59 | 922.4 | 6.9 | |
| Building and technical trade incl. Kesko Senukai, total | 562 | 5,380.8 | 4.7 | |
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In addition, building and technical trade stores offer e-commerce services to their customers. |
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| Key figures | 2020 | 2019 | ||
| Net sales, € million | 3,639.5 | 3,472.8 | ||
| Building and technical trade excl. speciality goods trade and Kesko Senukai | 3,424.3 | 3,1261 | ||
| Speciality goods trade | 215.2 | 346.7 | ||
| Operating profit, comparable, € million | 187.7 | 115.9 | ||
| Building and technical trade excl. speciality goods trade and Kesko Senukai | 169.4 | 98.5 | ||
| Speciality goods trade | 7.4 | 9.5 | ||
| Kesko Senukai | 11.0 | 7.8 | ||
| Operating margin, comparable, % | 5.2 | 3.3 | ||
| Building and technical trade excl. speciality goods trade and Kesko Senukai | 4.9 | 3.2 | ||
| Speciality goods trade | 3.4 | 2.7 | ||
| Return on capital employed, comparable, %, rolling 12 months | 11.2 | 7.4 | ||
| Capital expenditure, € million | 186.3 | 332.7 | ||
| Personnel, average | 9,308 | 12,630 | ||
| The change in Kesko Senukai’s consolidation method from a subsidiary to a joint venture as of 1 July 2020 has impacted the performance indicators for the building and technical trade in the segment information. In the segment information for the building and technical trade, performance indicators are illustrative except for the balance sheet indicators and personnel numbers. | ||||
| Properties | 2020 | 2019 | ||
| Owned properties, capital, € million | 159 | 222 | ||
| Owned properties, area, 1,000 m² | 230 | 235 | ||
| Leased properties, area, 1,000 m² | 865 | 1,253 | ||
