Decline in K-food stores' market share has slowed down

KESKO PRESS RELEASE 22.3.2016 AT 10:15 1 (1)

Research firm A.C. Nielsen published today information about the market shares in the Finnish grocery trade for 2015. K-food stores' strategy has proved effective and the decline in the market share has slowed down further. Our largest chain, K-citymarket, increased its market share.

According to the report by Nielsen, K-food stores' market share declined by 0.4 percentage points to 32.7% in 2015. The data is based on figures for the whole year of 2015.

"When we look at the K-food stores' market share on a long term basis, it seems that the decline is nearly over. During 2015, we increased our market share in several months. We are pleased that our largest chain, K-citymarket, grew its market share, which can be attributed to the excellent implementation of the chain's development projects and their success. The impact of the divestment of Anttila on market share figures must also be noted. In line with our strategy, we are focusing significantly on the neighbourhood market and on the refurbishment of K-market stores, which we believe will also show in the market share trends in 2016 and 2017," says Jorma Rauhala, Senior Vice President for Kesko's grocery trade.

"When we take the continuing weak development of purchasing power and keen price competition in the grocery trade sector in Finland into account, we can be pleased with our development in the light of the latest figures. Finnish people clearly value more and more the business model that is based on the K-food stores' excellent quality, selection and service. Our approximately 900 K-food stores across Finland are different, with their selections and services tailored to meet the demand of local customers," says Rauhala.

In accordance with its strategy, Kesko seeks growth in the neighbourhood market. Last October, Kesko announced that it is acquiring Suomen Lähikauppa. The completion of the acquisition is subject to the approval of the Finnish Competition and Consumer Authority and the fulfilment of the other terms and conditions of the transaction, and the acquisition is expected to be completed in the first half of 2016. The acquisition of Siwa and Valintatalo stores will enable the development of Finnish neighbourhood trade and open up significant new opportunities to serve customers.

Further information:
Senior Vice President, Jorma Rauhala, Kesko, grocery trade, tel. +358 10 532 2211
Vice President, Communications, Karoliina Partanen, Kesko, grocery trade, tel. +358 10 532 0744

K-food retailers, with whom the Kesko grocery trade applies the chain business model, are responsible for customer satisfaction at more than 900 K-food stores. K-food store chains are K-citymarket, K-supermarket and K-market. K-food stores are the most responsible in the world in their sector. Their strengths also include superior fresh food departments, competent service, the widest selections, Finnish products and Pirkka. K-food stores provide both high quality and affordable prices. K - for shopping to be fun.