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 with Wolt. Our grocery store chains are
K-Citymarket, K-Supermarket and K-Market. Kespro is the leading foodservice wholesale provider in Finland.

Strategic focus areas:

• Maintaining profitability: The target is to maintain good profitability with an operating margin clearly above 6%
• Gaining market share
• Developing store site network: Expanding the store network in growth centres and updating a large number of stores.
• Improving price competitiveness: Improving price competitiveness with a systematic price program, financed by both Kesko and K-retailers.
• Raising the level of store-specific business ideas: Focusing on fixing the basics, actively monitoring store performance.
• Improving fresh departments: Restoring competitiveness in selected fresh departments.
• Investing in am omnichannel and personalised customer experience: Utilising advanced technology, e.g. AI, to further develop processes and improve efficiency.
• Inventing new business models for new sources of income: Investing in selected new businesses utilising K Group’s ecosystem, e.g. media and data business.
• Further strengthening Kespro’s market-leading position

Trends and operating environment:

Consumer confidence

• Consumer confidence still low
• Importance of price continues to be significant
• Offers and campaigns continue to be important

Demographic changes

• Population ageing, concentrated in growth centres
• Growing number of smaller households
• Store site 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.

Kesko updated its strategy in spring 2024. On 4 June 2024 we organised an investor event where President and CEO Jorma Rauhala and other members of Kesko’s top management presented the company’s updated strategy and focus areas for the three business divisions. The event was held in English. Watch the recording and related materials here.