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