K-FOOD STORES STRENGTHENING OPERATIONS ON THE ÅLAND ISLANDS - MATHIAS ERIKSSON’S STORES BECOME K-SUPERMARKETS

Kesko Food Ltd and Ab Mathias Eriksson, a retail operator on the Åland Islands, have concluded a long-term agreement according to which the Mathias Eriksson grocery stores are included in the K-supermarket chain as of 1 September 2003. The agreement makes the first K-supermarket of the Åland Islands available to customers.

The K-supermarket chain will be complemented by the grocery stores Kantarellen and Mathis-Hallen. Kantarellen is the largest food store of the Åland Islands and is located at Jomala, outside Maarianhamina. Its total area is 2,100 square metres, of which the selling area is 1,250 square metres. The store has a personnel of 30. Mathis-Hallen is located in the downtown area of Maarianhamina. Its total area is 1,020 square metres, of which the selling area is 680 square metres. The number of personnel is 14.

Kesko’s objective has been to open a large K-supermarket on the Åland Island and a project for the site located on the Västra Utfarten is well underway. This agreement and the planned expansion of the Kantarellen store provide a new solution, which combines the competitiveness of the K-supermarket chain with local presence and competence.

The K-Alliance currently operates one K-market and 13 K-extra stores on the Åland Islands. In addition, the province has five K-stores operating outside chains, two of which are now converted to K-supermarkets.

K-supermarket is one of the K-Alliance grocery store chains to have recorded the best growth performances during the last few years. In 2002, the chain’s sales amounted to about 1,3 billion euros. The chain currently includes 140 stores and the target is to increase the number to about 190 by the end of 2006.

Mathias Eriksson is the leading grocery retail operator on the Åland Islands. In addition to the stores that are now converted to K-supermarkets, the company has a K-food store at Västernäs. The company also engages in tax-free trading to aeroplanes and ships. Mathias Eriksson is part of the Wiklöf Holding group owned by Anders Wiklöf.

Further information:
Vice President Lasse Lehtinen, tel. +358 50 383 7814
District Director Olli Setänen, Southwestern Finland District Centre, tel. +358 500 536 421