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Year <strong>2007</strong><br />
Divisions The Group Financial statements Further information 35<br />
chain concepts for the needs of various customer<br />
groups by further enhancing the Asko<br />
brand. Indoor Group will divest its operations<br />
in Sweden by summer 2008. The focal points<br />
in 2008 will also include improvements in<br />
cost-efficiency and further improving the<br />
accuracy of deliveries.<br />
home technology trade<br />
Musta Pörssi<br />
The Musta Pörssi chain offers its customers<br />
home technology products to make housework<br />
easier, enhance communications and<br />
provide entertainment. In addition, Musta<br />
Pörssi offers a comprehensive range of product-related<br />
services. The chain consists of 55<br />
stores specialising in home technology, of<br />
which 46 are owned by retailer entrepreneurs<br />
and nine by Musta Pörssi Oy.<br />
Market<br />
The Finnish total market for home technology<br />
products is about €2.1 billion. The market continued<br />
to grow as Finnish households moved<br />
into the era of digital TV broadcasts. Sales of<br />
flat screen TVs and digital adapters in particular<br />
grew strongly.<br />
Year <strong>2007</strong><br />
The net sales of Musta Pörssi Oy were €147.5<br />
million, representing an increase of 11.8%.<br />
The retail sales of the Musta Pörssi chain<br />
were €203 million and, an increase of 10.1%<br />
over the previous <strong>year</strong>. The growth of the<br />
Musta Pörssi chain exceeded that of the total<br />
market.<br />
Objectives and outlook<br />
The increase in consumers’ purchasing power<br />
and their interest in home technology products<br />
will continue to keep demand high.<br />
Rapid technological development will<br />
decrease the prices of products. In spite of<br />
this, in terms of euros the demand for home<br />
technology products is estimated to increase<br />
more than the average consumer demand.<br />
The Musta Pörssi chain aims to achieve<br />
sales growth exceeding that of the sector.<br />
This will be achieved by offering customers<br />
the best service package at a competitive<br />
price. The package consists of good customer<br />
service and availability of products. Besides<br />
home technology products, Musta Pörssi<br />
offers customers diversified installation services<br />
and user guidance.<br />
Shoe trade<br />
Kenkäkesko<br />
Kenkäkesko’s two chain store formats are<br />
K-kenkä and Andiamo. K-kenkä is a shoe<br />
store for the whole family, offering its customers<br />
a wide selection of branded footwear<br />
and expert service. Andiamo’s main target<br />
group is trendy and fashion-conscious shoppers,<br />
for whom the store offers a continuously<br />
renewing and fashionable selection of shoes.<br />
The K-Group’s speciality shoe outlets also<br />
include the Kenkäexpertti stores which operate<br />
in the smallest towns.<br />
Market<br />
The total retail market for shoes in Finland is<br />
approximately €540 million, of which<br />
Kenkäkesko’s store types account for about<br />
11%. Shoe retailing has become more of a multiple-channel<br />
business and the hypermarkets<br />
have taken the largest share of the market<br />
growth.<br />
Year <strong>2007</strong><br />
The net sales of Kenkäkesko were €23 million<br />
in <strong>2007</strong>, a decrease of 3.4% from the previous<br />
<strong>year</strong>. The sales of the Andiamo and K-kenkä<br />
stores decreased by 6.6%, and the combined<br />
sales of all of the K-Group’s speciality shoe<br />
stores amounted to €58.9 million.<br />
There were 30 K-kenkä, 19 Andiamo and<br />
42 Kenkäexpertti stores at the end of <strong>2007</strong>.<br />
Four of them are owned by Kenkäkesko and<br />
the others by retailer entrepreneurs.<br />
Objectives and outlook<br />
The shoe market is anticipated to increase by<br />
3–4% in 2008. Specialist shoe retailing will<br />
have an increasing number of distribution<br />
channels and will continue to concentrate on<br />
downtown areas and shopping centres.<br />
The K-kenkä and Andiamo stores aim to<br />
exceed the average sales growth in the sector,<br />
and to achieve this by increasing the store<br />
network and offering customers comprehensive<br />
selections of footwear with a competitive<br />
price/quality ratio. The operational priorities<br />
also include enhancing staff skills throughout<br />
the whole chain, in particular retail sales<br />
and service competence, and improving the<br />
cost-efficiency of the operations chain.