Kesko's year 2007

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