EXCLUSIVEBRANDSOURCING RETAILER/WHOLESALER ...

Chainwide 2010 Sales: $14.5 Billion ( € 10.9 Billion) +4.2%; Sales: $11.7 Billion ( € 8.8 Billion)
+4.8%; K- Group Food Store Sales: $5.2 Billion € 3.9 Billion) +2.6%; K- Group Building &
Home Improvements Store Sales: $ 3.3 Billion (€ 2.5 Billion) +9%; Car & Machinery Trade
Sales: $1.3 Billion (€ 955 Billion) +0.8%
Percentage of K store Sales in Exclusive Brands: 17%
Principal Business: Kesko, established in 1940, is a marketing and logistics company, overseeing
some 2,000 stores in eight countries: Finland, Sweden, Norway, Estonia, Latvia, Lithuania,
Russia, and Belarus. Its business is diversified into food (1,000+ K-food stores), home and
specialty goods (427 stores in 13 chains), building and home improvement (331 stores), and car
and machinery trade (importing and selling automobiles). In the food sector, there are four chains:
K-Citymarket, K-Supermarket, K-Market, and K-Extra. In home and specialty goods, its 13 chains
include: Anttila and Kodin Ykkonen, K-Citymarket’s goods, Intersport Finland, Indoor’s Asko
and Sotka, Musta Porssi and Kenkakesko. In building and home improvement, there are: K-auta,
Rautia, K-Maatalous, Byggmakker, Senukiai, and OMA chains--encompassing 331 building and
home outlets and 88 agricultural stores in Finland plus 96 retailer-owned stores in other countries.
Overall there are 1,270 K-retailer entrepreneurs and another 170 other entrepreneurs involved as
partners in the Asko, Sotka, Byggmakker, Senukai chains. Kesko is listed on the NASDAQ OMX
Helsinki Stock Exchange under KESAU.
EB Identities: Prikka (1,700 products), Euro Shopper (the mark of AMS, Associated Marketing
Services of Switzerland), Rico (imported fruits and vegetables), Costa Rica (coffee). Besides these
principal brands, Kesco oversees some 650 registered trademarks, assigned in different product
categories, such as: Menu (catered foods), Kokki (cooking utensils), Pirta (yarns), Harmony
(textiles), the shoe brands—Andiamo, Knox, Hankiset, and Snoopy, all in Home and Specialty
Goods; K-Prof, Power, and Varma Valinta (hardware), all in builder’s and agricultural supplies;
etc.
EB skus: 2,000+ (E)
Profile: In 2009, the recession deteriorated the Finnish economy as well as Kesko’s markets in
other countries, where its net sales overall plummeted by 11.9%, mostly in the car and machinery
sector (sales off 36%), followed by building and home improvements (off 22.4%). But net sales
for 2009 in food advanced by 2.4% and in the K-food stores up by 5.6%, while K-Citymarket
sales jumped by 14.3%. A much better economy put Kesko back on track in 2010 throughout its
diversified trading sectors. In food trade, a new K-Citymarket opened as well as seven Ksupermarkets
and eight K-markets, plus a department store in home and specialty goods. In
building and home improvements, four new stores were added. The company reported strong
2010 sales for its own brand Pirkka, up by 11.2% for the year. Operating profit for the group was
€ 268.1 million up by 72.5%.
Procurement Contacts: Janne Jantunen, Annamari Paananen, Tomi Liski, Timo Turunen, Titta
Puranen, all Category Managers; Auli Kosonen, Buyer; Kaja Grommi, Brand Manager
KF GROUP/COOP SVE RIGE AB