Kesko Food to test retailer-operated discounter system at Cassa Ylivieska

Kesko Food will test retailer operation in its Cassa discounter chain during this summer and autumn. The test store will be the Cassa outlet in Ylivieska whose current manager will start running the store as an independent entrepreneur. The test is aimed at establishing an operating system that would combine the best features of entrepreneurship and chain operations.

For the purposes of the test, a co-operation model has been developed that differs from the traditional K-retailer system. The final form will be established after the test has ended. Due to competition restrictions, the traditional system cannot be used in a discounter chain which must have a uniform product selection and pricing.

The Cassa discounter in Ylivieska was chosen as the test unit because many elements relating to the discount store concept have been tested successfully in that particular store. In addition, the Store Manager Sari Huhtala, 31, who now starts as a retailer, has a wide experience in different retailing systems. She is a Business College Graduate (Marketing), has completed the K-Alliance's retailer training programme and acted as a K-retailer in Hartola. The six permanent employees plus the three summer employees of the Cassa Ylivieska discount store will be transferred under their previous conditions to the new entrepreneur.

Kesko Food aims at establishing a competitive operating system for use by the K-Alliance in Finland's discounter market by testing the Cassa concept as extensively as possible in different parts of the country. The concept has been tested for location, size, selection, marketing, pricing and fixtures among other things. One Cassa was also tested with regard to construction. The plan is also to test the retailer-operated system in another Cassa discounter during the summer.

Cassa's low prices are based on an efficient supply chain, simple store concept, limited product selection, broad-based international purchasing co-operation and light organisation. The selection mainly comprises foods, but also includes home and speciality goods, such as textiles and home appliances. The Euro Shopper products are the cornerstone of the selection.

The first Cassa stores were opened in February 2004. Currently the chain includes 26 units and employs some 300 persons. The chain is managed by Cassa Oy, which is a Kesko Food subsidiary.

Further information:
Cassa Oy's Managing Director Mika Rautiainen, tel. +358 1053 24900
Managing Director of K-Retailers' Association Paavo Moilanen, tel. +358 1053 36289
Retailer Sari Huhtala, tel. +358 50 409 7614