Kesko's year 2007

20
Kesko's year 2007
Own brands
High-quality and inexpensive Prof, Cello, FXA
and Fiorin product ranges help customers
implement their building, interior decoration
and renovation projects. International development
work was continued by launching
several new products and categories in 2007.
The new store look and new product ranges
were received well in all the countries where
Rautakesko operates.
The Cello range of interior decoration
items strengthens the sales and market position
of Rautakesko’s chains in these products.
The aim is to help customers reach purchasing
decisions with the help of a comprehensive
Cello collection. The new web site www.
cello-info.com was opened in summer 2007.
The Cello range grew by 150 new products
during the year.
The Prof product range offers high-quality
materials, supplies and tools related to building
and renovation for consumers and professionals.
The range grew by 200 products
during the year.
Inexpensive FXA hand tools were
launched in Finland, Sweden, Latvia and
Estonia in the autumn.
At the end of 2007, there were more than
1,000 different Prof, Cello, Fiorin and FXA
products on the market.
ments totalled €77.0 million, of which investments
outside Finland accounted for 59.3%.
In Finland, new K-rauta stores were
opened during the year in Hyvinkää, Kirkkonummi
and Kotka, and new Rautia stores in
Kurikka, Mäntyharju and Klaukkala, Nurmijärvi.
Refurbished K-rauta stores were opened
in Joensuu, Kouvola, Välivainio and Äimärautio
in Oulu, and Rautia stores in Alajärvi,
Kaavi, Konnevesi, Oulainen, Raahe and Salo.
In Sweden, new K-rauta stores were
opened in Umeå and Växjö, and the refurbished
and expanded K-rauta was opened in
Gävle where its predecessor had been
destroyed by fire a year before. Byggmakker
stores were opened in Oslo and Haugesund,
Norway. In Tallinn, Rautakesko opened its
biggest store in Estonia. In Latvia, K-rauta
stores were opened in Tukums and Daugavpils.
In St. Petersburg, Russia, Rautakesko
opened its eighth K-rauta outlet in December.
Rautakesko renewed its cooperation
agreement with the Pulmonary Association
Heli in the ’Mould Trap’ project, effective in
2007 and 2008. The K-rauta and Rautia
chains support the renovation of mouldaffected
one-family houses by delivering the
required supplies for interior decoration, sanitary
areas and ventilation free of charge.
Rautia participated in the Hämeenlinna
housing fair with the Vieska house brand and
K-rauta with the Avainkoti house brand.
The Latvia Building Material Traders’
Association chose K-rauta Ulmana in Riga as
the best building materials retail company in
2006. K-rauta Liepaja was rated third in the
contest.
Several new import projects were started
in 2007 through the Shanghai sourcing
agency established with Kauko-Telko at the
end of the previous year. Thanks to a sourcing
agency of our own we can leverage the purchasing
power and logistics of the entire
international Rautakesko to the benefit of our
customers.
In July, Senukai acquired the majority of
voting rights in the Lithuanian UAB Romos
Holdingas, which owns OMA, a Belarussian
DIY operator.
Objectives and outlook
Rautakesko will significantly expand and
modernise the present store network in every
operating country, particularly in Russia, during
the next three years. The target is to
increase the proportion of services out of
total sales and to achieve market leadership
in all operating countries.
Eight K-rauta and four Rautia outlets will be
refurbished in Finland in 2008. Four new stores
will be opened in Sweden, one in Norway, six in
the Baltic countries and two in Russia.
The store concepts of the retail chains will
be enhanced actively. The stores in Sweden,
Estonia and Russia will be reformed to comply
with the revised K-rauta store concept. A
project has been started to upgrade the Rautia
store concept, which will reach the pilot
stage during the year 2008. In Norway, 25–30
Byggmakker stores will be annually converted
to the revised concept.
Rautakesko will develop its operations
and support the retail chains with joint business
models and systems in all the operating
countries. Synergy benefits are sought with
uniform product ranges, own brands, productised
services, logistics solutions, centralised
information management, partnership cooperation
projects, and improving staff
competencies.
Rautakesko will gradually adopt the joint
information system of its retail chains (Best
Practice Retail Solutions, BPRS) in all its
operating countries by the end of 2011. The
information system will be first adopted in
Norway in early 2008. Furthermore, an internationally
uniform logistics network is also
being planned.
The starting point is strengthening the
market position in all operating countries.
With the view to achieving the best customer
satisfaction Rautakesko focuses on motivated
and skilled staff and on close joint operations
while taking the local market situation
into account. The management’s role as trainers
and motivators by setting an example will
be emphasised.
Rautakesko’s fast expansion in many
countries has necessitated taking cultural
differences into account and introducing new
joint business models. During the following
three years, the focus will be on arranging
training in sales and customer service and
common international training events.
In 2008, Rautakesko will continue to
invest in new store sites, employee competencies
and a uniform information system. It is
expected that Rautakesko’s net sales will
grow in 2008. Its operating profit excluding
non-recurring items is expected to grow
slightly in 2008.