Grocery trade strategy

Our strategy works – further gains in market shares

Our strategy in the grocery trade division is to increase sales and profitability in a changing market with a customer-oriented approach. Year 2020 proved that this strategy works also under very exceptional circumstances, as we continued to gain market share in both grocery trade and foodservice. We successfully ensured safe shopping conditions, positive customer experiences, and selections that met expectations.

K Group is the second biggest grocery trade operator in Finland, with a market share of 36.8%* (2019:  36.7%). In 2020, we gained market share in all grocery store chains. We opened two K-Supermarket stores, and eight K-Market stores, four of which were replacement new buildings. We invested €110 million in our store network, focusing on the redesign and renovation of existing stores.

Customer experience at the core of our strategy

We utilise customer data to introduce new products and services that best suit the needs of the customers of each K Group grocery store. We focus on responsible, high-quality selections that enable differentiation, on convenience and individuality, not forgetting prices. Products sold exclusively at K Group stores enable differentiation, support store-specific business ideas, and result in higher average purchases. New products and product ranges linked to well-known restaurant brands have been very popular among our customers. Inspiring digital services that make life easier have also helped to improve customer experience.

The strategic choices we have made have proven correct, as indicated by the good development of sales and customer satisfaction in all our grocery store chains and online. The NPS for all K Group grocery stores places customer satisfaction at 65.1; the NPS for online grocery sales is a staggering 83.0. In total, sales for the grocery trade division grew by 9.4% in 2020, thus exceeding the market growth.

K-Ruoka is the biggest food media in Finland: the K-Ruoka.fi website and the K-Ruoka mobile app had 2.8 million visits in 2020. The app has over 215,000 active users weekly.

The strategy for the grocery trade division is to increase sales and profitability in a changing market with a customer-oriented approach

Business environment 

• Digital is a basic requirement 
• Hybrid and polarised consumption set to grow stronger 
• Significant demographic changes 
• Emphasised importance of climate change and environmental awareness
• Operations and concepts must be responsible and sustainable

Grocery trade net sales and operating profit 1-12/2020 

The grocery trade strategy review can be read in Kesko's 2020 Annual Report.

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