Kesko's year 2007

24
Anttila
Kesko's year 2007
Anttila is the leading home and
speciality goods retailer in Finland.
Anttila serves its customers with two
department store concepts – the Anttila
department stores and the Kodin
Ykkönen department stores for interior
decoration and home goods – and with
the NetAnttila concept focused on
distance sales. NetAnttila provides its
online and catalogue sales services and
products in Finland, Estonia and latvia.
Anttila’s customers value, above all,
diversified, up-to-date and low-priced
selections, and good service.
Market
In Finland there are 28 Anttila department
stores, eight Kodin Ykkönen department
stores for interior decoration and home
goods, and the Kodin1.com online store.
NetAnttila is engaged in distance sales and
serves its customers online and by catalogue.
Anttila retails entertainment, fashion and
home goods, whose total market is estimated
to be €7–8 billion. The annual growth in the
market is about 3–5%.
Customers of Anttila department stores
value good, expert service and diversified leisure,
clothing and home goods selections
combined with a low price level.
Kodin Ykkönen is Finland’s widest and
most diversified chain of speciality department
stores. Customers of Kodin Ykkönen
value diversified selections, interior decoration
ideas and good design and other service.
Customers of NetAnttila value ease of
shopping, low prices, reliability and flexible
payment options. NetAnttila operates in Finland,
Estonia and Latvia.
Anttila’s competitors include department
stores, hypermarkets, speciality store chains
and online stores. The importance of discounters
as competitors to Anttila is growing
as they form chains and start to focus on
branded goods.
Strengths
Anttila focuses on home and speciality goods
retailing. Approximately 26 million customers
visit Anttila every year. There are about
2,100 employees in Anttila’s customer service.
Anttila bases its selections on customer
wishes, purchasing behaviour and over
50,000 annual items of customer feedback.
Anttila differentiates itself from competitors
not only through its comprehensive selections,
but also through its focus on stores providing
ideas and sales-oriented service.
Centralised purchasing and effective support
activities enable competitive pricing and
quick reactions to market changes.
Year 2007
In 2007 Anttila’s net sales totalled €563.7 million,
an increase of 2.9%. Sales performance
was affected by the closing down of the City
department store in Helsinki in January 2007,
due to termination of the lease. The Kodin1.
com online department store was opened in
May 2007 and a new department store in
Mikkeli in October 2007. Anttila’s operating
profit excluding non-recurring items was
€25.2 million.
The focus on service and customer-orientation
was reflected in good sales growth, particularly
towards the end of the year. In Estonia,
distance sales declined by 16.9%, which
can be attributed to the expansion of the traditional
store network and the decrease in the
number of catalogues. In Latvia, distance
sales increased by 9.4% thanks to the successful
customer credit system.
Objectives and outlook
The market for home and speciality goods is
estimated to grow overall by 3–4% in 2008,
but there will be differences between product
lines. The 2007 sales growth in home electronics
can, to a great extent, be attributed to
the strong sales of digital equipment in the
late summer. Interior decoration and home
technology will continue to be important for
consumers. Anttila’s objective is to grow
faster than the market and it will continue to
highlight customer service and sales training
for the staff. The range of services related to
home and speciality goods will be developed
and they will be marketed actively.
Anttila’s strategic objectives include
strengthening its market position on a profitable
basis, improving customer loyalty,
achieving a high level of competence, and
increasing online services. New Anttila
department stores will be opened in Pori and
Rovaniemi in 2008 and the second Kodin
Ykkönen department store will be opened in
Tampere in autumn 2009. The proportion of
branded products in store selections will
grow. The average purchase and the number
of customer visits will be increased through
higher customer loyalty. The range of products
and services available online will also be
increased.
In 2008, Anttila’s net sales are expected to
grow, and its operating profit excluding nonrecurring
items is expected to match the level
of 2007.