E-commerce and EU regulation were major topics at the UGAL General Assembly hosted by Kesko in Helsinki

KESKO CORPORATION PRESS RELEASE 26.05.2011 AT 12.30 1(1)
  
The Union of Groups of Independent Retailers of Europe - UGAL - held its General Assembly in Helsinki on 25-26 May 2011. The meeting gathered about 50 representatives from different parts of Europe.

The special theme of the assembly was e-commerce. According to Dr. Peter Hampl, the President of the UGAL, the Union will keep a particularly close eye on the discussion concerning the proposed directive on consumer protection. The proposal includes several new provisions which will have an impact on e-commerce. UGAL considers it very important that the proposed regulation relating to product and purchase price returns will not increase the risk of malpractice.

The assembly also discussed the efficiency of the food supply chain. Kesko and K-retailers consider it important that no increasingly strict limitations or sanctions are set on trading sector operators by the EU or Finnish legislation. Such development would be against the interests of consumers.

"Kesko works in constructive cooperation with producers and the food industry. The customer decides every day where to shop and what to buy. The domestic origin of products and wide selections are the K-stores' competitive advantages," says President and CEO Matti Halmesmäki.

Food accounts for an average of only 12.5 percent of Finnish households' expenditure, less than ever before. According to Halmesmäki, a nationwide examination of market shares in the grocery trade does not give the right picture of the competitive situation, as the 932 independent K-food retailer entrepreneurs of the group also compete against each other locally every day.

"Current market shares have been achieved through keen competition which will remain so. Every operator has to bear responsibility for its own productivity and competitiveness. This is the only way to ensure the future of the Finnish food production," says Matti Halmesmäki.

Further information:
Merja Haverinen, Senior Vice President, Corporate Communications and Responsibility, Kesko Corporation, tel. +358 10 53 22764
Anne Leppälä-Nilsson, General Counsel, Kesko Corporation, tel. +358 10 53 22347

UGAL, based in Brussels, was established in 1963. Kesko has been a member since the 1970s. UGAL represents over 300,000 independent European retailers, who run a total of more than 500,000 sales outlets in the EU area.

The retailer groups employ over five million people. UGAL's member organisations include ICA (Sweden), Intersport International, Edeka (Germany), Expert International, Euronics International, Spar International, and CONAD (Italy).
Further information: www.ugal.eu