KESKO CORPORATION STOCK EXCHANGE RELEASE ... - Euroland

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Oulu, a K-supermarket in Lahti and two new Pikkolo stores in
Helsinki. The Pikkolo stores are new urban convenience stores
that also focus on takeaway products. There are now five pilot
stores operating. The aim is to build a chain of about 100
stores within the next few years. The extension of the Salo
Citymarket will be completed in the spring. The major stores
under construction that are due to be opened this year are
Citymarkets in Espoo and Forssa, and K-superstores in Oulainen,
Oulu and Ulvila.
The expansion of Kesko Food´s operations in the Baltic countries
is progressing according to plan. A new logistics centre of
15,000 square metres started operations in Estonia in January.
The total investment amounted to about EUR 8.3 million. At the
same time, a new system for controlling operations, SAP, was
introduced. In Estonia, a new SuperNetto store was opened in
Tartu on 4 May 2001, and a new store will be opened in Pärnu in
the autumn. The first SuperNetto store in Latvia has reached the
"topping-out" phase and it will be opened in Riga in September
2001. Kesko’s target in the Baltic countries is to gain a share
of about 20-25 percent of their total grocery market, which is
about EUR 4.0 billion.
The Carrols chain aims to increase its operations in Finland in
line with strategy. At the end of March, it sold its restaurant
operations in Tallinn to Hesburger AS. Carrols AS had three
restaurants in Tallinn. At the end of the period, Carrols had 71
hamburger restaurants and four Drop Coffee Shops in Finland.
Kespro Ltd, a company providing services to catering customers,
is focusing on expanding its market for deliveries to customers.
A new wholesale network, which differs from the conventional
wholesale and cash & carry outlets with respect to opening
hours, range of goods, Internet service and fast deliveries,
will expand to Vantaa in May 2001. It will replace the former
cash & carry outlets in Vantaa and Ruoholahti, Helsinki. A new
cash & carry outlet is also under construction in Lahti. At the
end of the period, the number of cash & carry outlets was 20.
Internet business will continue to be developed in 2001.
Due to the costs arising from initiating the new chain operating
system and its expansion in the Baltic countries, Kesko Food´s
operating profit for the whole year is forecast to fall short of
the level of 2000.
Rautakesko
Rautakesko´s net sales amounted to EUR 172 million, an increase
of 5.6 percent. The increase was attributable to expansion in
Sweden and the Baltic countries. Foreign subsidiaries already
account for over 12 percent of Rautakesko´s net sales. The
operating loss was EUR 1.8 million (operating profit EUR 0.2