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Competitive strength and advantage from chain operations and K-retailer enterprise

The K-Group's principal business model in Finland is the chain business model, in which independent K-retailers run retail stores in Kesko's chains. At the end of 2011, Kesko had 1,102 K-chain retailer entrepreneurs and about 130 other retailer entrepreneurs as partners.

Cooperation between K-retailers and Kesko – chain operations – is based on equality, openness and willingness to develop joint operations. The objective of chain operations is improving competitiveness and customer satisfaction combined with achieving a higher, uniform quality and lowering costs.

The obligations and rights of K-retailers and Kesko have been specified in the chain agreement.

Competitive edge is gained by combining systematic chain operations and the K-retailer operations based on entrepreneurship. Kesko is responsible for the constant development of the business model and the store concepts, for chain operations management and for sourcing and purchasing the products included in the chain selections. The K-retailer entrepreneur is responsible for his or her store's customer satisfaction, personnel and profitability of business.

To ensure success, it is important that a new retailer's professional and other skills are at as high level as possible at the start of the retailer career. About 200 stores are affected by retailer changes annually in the K-Group. The annual need for new entrepreneurs, ready to start their K-retailer careers, is 50–100. The K-Group systematically trains new retailers to ensure a sufficient supply of people with the appropriate professional skills. New candidates interested in a K-retailer career are sought through different channels. There are about 600 contacts annually. The requirement for new retailers is estimated for 1–3 years ahead. In 2011, 78 new K-retailers started their careers.

Future K-retailer entrepreneurs are trained in the retailer training programmes. The training consists of online studies, on-the-job training under a mentor retailer and regional events for exchanging experiences. The content and duration of the programme can be flexibly and efficiently defined for each student on an individual basis, taking their development potential, work experience and education into account. The structure of the training model ensures the reliable monitoring of progress in competence development.

K-retailers from entrepreneur path

The retailer entrepreneur path, a systematic training route for would-be K-retailers, has been developed by Kesko Food and polytechnics. It has been adapted to constitute an optional module of polytechnic studies. A related cooperation agreement has been signed with 17 polytechnics and the model is being further expanded.

Many of those starting the retailer programmes have a steady amount of retailing experience, but the number of students transferring from other fields or having just finished their general education has grown.

More than 100 people complete the programmes every year. After completion, they are ready to start as independent K-retailer entrepreneurs.

The K-Group gives its retailers strong background support and opportunities for further training and progress in their K-retailer careers.

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K-kauppiaat palveluksessasi 100-vuotta

K-retailers at your service for 100 years

The K-Retailers' Association celebrates its 100th anniversary in 2012. The origins of K-retailers' cooperation date back to the late 19th century, but the first retailer association was officially founded in 1912 when 'Suomen Maakauppiasliitto' was established by rural retailers at a meeting held in Tampere. The K-Retailers' Association looks after the interests and promotes the cooperation of K-retailers. All Finnish K-retailers are members of the association. The K-Retailers' Association's duties include enhancing and strengthening K-retailer entrepreneurship as a competitive asset of the K-Group and promoting K-retailers' joint interests in the K-Group and trading sector organisations. In K-stores, the centenary year will be seen in the form of various campaigns and print and TV advertising.