The store site network is a strategic competitive factor for the K-Group. It provides opportunities for business operations to develop and sales and customer satisfaction to increase.
The store sites are divided into four categories: strategic properties, standard properties, realisation properties and development properties.
- Kesko prefers to own them
- In 2015, strategic properties accounted for 64% of all store sites
- They involve important business interests, such as large retail stores and properties that can be developed into large stores
- Kesko owns them but they can be sold and leased back
- In 2015, standard properties accounted for 26% of all store sites
- Premises for which Kesko has no further business use
- Sites and properties in need of further development for their intended use
In 2015, Kesko’s capital expenditure in store sites totalled €166.7 (142.7) million
In view of Kesko’s growth, key capital expenditure comprises:
- Grocery trade properties in the key growth centres in Finland
- Accurately targeted capital expenditure in store sites in the grocery trade and building and home improvement trade in Russia
Kesko makes capital expenditure only in properties needed for its own or supporting business operations.
At the end of 2015, the most important store sites under construction were:
- The K-citymarket shopping centre in Itäkeskus, Helsinki
- K-citymarket in Sastamala, new K-supermarkets in Tampere, Niipperi and Niittykumpu in Espoo, Lappeenranta, Haapajärvi and Lauttasaari, Töölö and Kalasatama in Helsinki
- Two new food stores under construction in St. Petersburg in Russia
- K-rauta stores to Kokkola and Lahti, and a Senukai store to Vilnius
Kesko estimates that its capital expenditure excluding business acquisitions will total approximately €750 million in 2015–2017. In accordance with Kesko’s strategy, capital expenditure in the K-supermarket and K-market chains will increase significantly in the next few years. A completely new store concept is being tested in the grocery retailing market.
Kesko’s real estate arrangement
Kesko Corporation, AMF Pensionsförsäkring AB and Ilmarinen Mutual Pension Insurance Company set up a joint venture called Ankkurikadun Kiinteistöt Oy in June 2015. The joint venture owns, manages and develops store sites primarily used by Kesko Group.
A total of 37 store sites were acquired by Ankkurikadun Kiinteistöt Oy over the course of 2015.
New services at store sites
When designing new grocery stores, the premises needed for online sales are taken into account from the very beginning. In the click and collect business model, a separate storage and packaging area is built in the store for products ordered online. There are parking slots reserved for online customers in the store yard and purchases are paid for at the car when collecting.
K-food stores have long experience in providing postal services and Posti already has service points at about 170 stores. DHL Express and the K-Group started cooperation with the purpose of setting up 250−300 DHL service points at the K-Group’s food stores and building and home improvement stores across Finland.
Energy-efficient construction and property maintenance
When a new store site or shopping centre is being planned and built, the starting point is sustainable development and energy efficiency. In maintenance and repairs, the starting point is also lowering life-cycle costs.
Store site projects involve major capital expenditure, the implementation of which requires skilled people, a high-quality network of cooperation and common rules. Kesko has long experience and plenty of competence in the implementation of demanding store site projects.
In order to indicate the high level of requirements, international environmental classification to be carried out by an external assessor is applied for the most significant store site projects.
It is important to keep an eye on the development in the building and energy sector and anticipate changes. Technology is advancing all the time. The rapid development requires expertise to identify when it is the right time to reject the existing technology and move on.
Kesko is participating in the national energy efficiency agreement, in which we are committed to improving our energy consumption by 65 GWh by the end of 2016 through various actions. This amount corresponds to the annual consumption of some 3,200 one-family houses.
By the end of 2015, Kesko had improved its energy consumption by 64 GWh and achieved 97% of its objective.
- Solutions that decrease the consumption of materials and energy during the life cycle of the property
- The lowest life-cycle costs in the trading sector
- Optimum conditions for customers, employees and products
Retail stores achieve significant energy savings with these energy efficient solutions:
- Lids and doors on refrigeration equipment
- Recovery of condensation heat
- Refrigeration equipment that uses carbon dioxide
- Adjustable and directional lighting
- LED technology in neon signs
- Increased use of LED lighting also inside the store