Kesko's year 2007

Year 2007
Divisions The Group Financial statements Further information 33
in outdoor activity-related product groups.
Budget Sport’s customers are interested in
outdoor activities and value low prices and
ease of purchasing.
There are 56 Intersport stores, 39 Kesport
stores and two Budget Sport stores in Finland,
of which 90 are owned by retailer entrepreneurs
and seven by Intersport Finland.
Market
The sports trade market in Finland is growing
at the rate of 3–4% per year. People’s interest
in their own health and wellbeing has
increased, which is reflected in the sales
growth of special sports and fitness equipment,
for example.
The main competitors of the Intersport
Finland chains include Sportia, Top Sport,
Stadium, department stores and hypermarkets,
and other speciality stores.
Year 2007
The net sales of Intersport Finland were €147
million in 2007, representing an increase of
3.4%. The combined retail sales of the company’s
store formats were €274.1 million, up by
6.7%.
In 2007, an Intersport megastore was
opened in the centre of Turku and the second
Intersport was opened in Lappeenranta.
The second outlet in the Budget Sport
chain was opened in the Ideapark shopping
centre in Lempäälä in April.
Objectives and outlook
Stable growth will continue in the sports market.
Foreign rivals and increased price competition
will tighten competition in the sector.
The chains of Intersport Finland aim at
growth exceeding the market average. This
will be achieved by enhancing the staff’s sales
and service competence and improving the
store concepts.
The next Budget Sport stores will be
opened in Espoo and Raisio in spring 2008.
Intersport Finland is also making preparations
to open sports stores in the Baltic
countries.
Furniture and interior
decoration trade
Indoor Group
Indoor Group is a furniture and interior decoration
retailer which operates through the
Asko and Sotka store chains in Finland and
the Baltic countries. Asko and Sotka together
have 85 stores in Finland, six in Latvia, five in
Estonia and two in Sweden. In Finland, 51 of
the stores are owned by Asko, while 34 operate
as a franchise. Asko serves quality- and
brand-conscious home decorators with up-todate
and competitive product ranges that
cover all interior decoration needs. Sotka
offers the sector’s most competitive furniture,
in terms of its price-quality ratio, to customers
who value low prices.
Market
There continued to be strong interest in
home furnishing in 2007. Consumers spent
an increasing amount of money on home
comfort, focusing on both entertainment electronics
and interior decoration. The sizable
investments of many chains in their store networks
further intensified competition. The
Finnish furniture market grew to nearly €1.3
billion. Despite the keener competition, the
Asko and Sotka chains maintained their position
as Finnish market leader and increased
their position in the Baltic countries.
Year 2007
Indoor Group’s net sales totalled €196.5 million
in 2007. The retail sales of the Asko and
Sotka chains in Finland were €211.5 million.
Indoor Group expanded its store network vigorously
in 2007. New Asko and Sotka stores
were opened in Kemi, Joensuu, Kajaani,
Hyvinkää, Lahti and Vantaa. A new Sotka
store was opened in Huittinen and a new Asko
store in Rovaniemi. In Latvia, the third Asko
and Sotka stores were opened in Riga.
Indoor Group continued to focus on customer
service in its chains by improving the
reliability of its deliveries and the service
skills of its staff.
Objectives and outlook
It is estimated that high interest in home furnishing
and decoration will continue. Competition
in the furniture sector will be intense
and, consequently, it will be increasingly
challenging to meet customer expectations.
Indoor Group will continue to differentiate its