Grocery trade strategy

K Group is the second biggest grocery trade operator in Finland. Some 860  K-retailer entrepreneurs ensure good customer experiences for 1.2 million daily customers at K Group’s 1,100 grocery stores. Nearly 800 of the stores also offer online grocery services, supported by express deliveries. Our grocery store chains are K-Citymarket, K-Supermarket and K-Market. Kespro is the leading foodservice wholesale provider in Finland.

The division’s growth strategy is based on store-specific business ideas, extensive utilisation of data, and strong digital capabilities, combined with efficient processes. Online grocery operations support sales in our physical stores. Our strategic investments in new stores and updates to existing ones strengthen K Group’s sales and customer satisfaction. The division aims to further strengthen its market-leading position in Finnish foodservice.

Strategic objectives 

• Maintaining strong profitability
• Strengthening market share
• Delivering customer value
• Controlled, long-term development of the
  store site network
• Strengthening Kespro’s market-leading position

Competitive advantages

• K-retailer entrepreneurs and customer-oriented store-specific business ideas
• Modern and competitive store network, digital and other services supporting growth
• The most attractive, customer-oriented grocery stores especially in fresh products
• Advanced technologies and AI used to improve customer experience and efficiency
• The most sustainable grocery trade company in the world (Global 100)

Business environment

Consumer confidence

• Consumer confidence still low
• Price still important
• Offers and campaigns continue to be important
• Grocery trade market growing, signs of demand growing for high-quality products

Demographic changes

• Population ageing, concentrated in growth centres
• Growing number of smaller households
• Store network and selections must reflect the changes

Consumer megatrends

• Growing importance of convenience and eating out
• Increased focus on wellbeing for some consumers
• Important to address individual needs

Importance of data, AI, and digitalisation

• Growing role of data and digital services improving relevance
• Digitally-assisted sales growing
• New business formulated around data and digitalisation

Competition

• Continued high level of investments also from competitors
• Competing with both price and selections in physical stores and online
• Competition tightening further in online sales for home and speciality goods

Read more in Kesko's Annual Report.