Building and technical trade

The building and technical trade division offers its customers comprehensive selections of building and home improvement products, as well as electrical and HEPAC products, coupled with a wide store network, online stores and digital services.

Our customers in the sector are served by Onninen, K-rauta, Rautia, Byggmakker, Senukai, OMA and Rautakesko B2B Service. Kesko is the fifth largest operator in the European building and home improvement trade market.

The division also includes the furniture trade with Asko and Sotka, the leisure trade with Intersport, Budget Sport, The Athlete's Foot and Kookenkä, and the agricultural and machinery trade with K-maatalous and Konekesko serving our customers.

We operate in Finland, Norway, Sweden, Estonia, Latvia, Lithuania, Poland, Russia and Belarus employing a workforce of over 15,000. In 2015, the division's pro forma net sales totalled around €4.7 billion.

In January 2016, Kesko announced that it had made an agreement to acquire Onninen, a company specialised in the trade of HEPAC and electrical products, thereby strengthening its position in the European building and technical trade. The  acquisition was completed on 1 June 2016.

The first K-rauta Express stores were opened in Helsinki and Espoo in autumn 2015. The new store concept brings building and home improvement store services to city and shopping centres. In addition to tools, the selection focuses on home improvement and decoration products, such as paints and surface materials, and particularly serves the home renovation needs of city dwellers. Customers also have K-rauta’s wide product selection available for them to order for delivery to the K-rauta Express store.

Rautakesko B2B Service updated its online services and opened a Dekostudio on Bulevardi, Helsinki in November 2015 especially to serve business customers.

Our own brands, Cello, PROF, FXA and Fiorin, provide customers of building and home improvement stores with reliable and affordable products. Cello, which comprises products for the home and garden, revised its brand look in autumn 2015. The new Cello is livelier, more emotional and more inspiring than before.

The agricultural and machinery trade comprises the operations of K-maatalous and Konekesko. In 2015, we combined the operations of the agricultural and machinery trade in one unit to improve customer experience in Finland and to benefit from synergies in customer relationship. In addition to Finland, Konekesko also operates in the Baltic countries.

The chains in the leisure goods trade are Intersport, Budget Sport, The Athlete's Foot and Kookenkä. Intersport Finland Oy is the market leader in the Finnish sports trade with its Intersport and Budget Sport chains. International The Athlete's Foot chain was started in Finland in August 2016. 

In addition to a comprehensive store site network, customers have access to multi-channel e-services and several online stores. Customers shopping for leisure goods are served by Intersport.fi, Budgetsport.fi and Kookenka.fi. All K-rauta and Rautia stores in Finland and all K-rauta stores in Sweden, Estonia and Latvia provide a click and collect online store. Various e-services, such as home renovation planning tools, demand calculators and mobile applications, make shopping and transactions easier.

 

Competitive advantages in the building and technical trade:

  • Chain concepts and service offering based on customer needs
  • Serving different customer groups with the same store network
  • Comprehensive store network and extensive e-services
  • Efficient combination of online retailing and a physical store network
  • Click and collect business model
  • Skilled customer service in stores and e-channels
  • Well-known, reliable store chains and product brands
  • Efficient sourcing and logistics
  • Internationally uniform business models

     

 

Building and technical trade

K-rauta

The international K-rauta chain offers products and services for building, renovation, yard and garden, interior decoration and furnishing to consumer, project and business customers. There are K-rauta stores in Finland, Sweden, Estonia, Latvia and Russia. All K-rauta stores in Finland are run by retailer entrepreneurs.

www.k-rauta.com

Rautia

Rautia serves especially builders, renovators and building professionals with the most extensive building and home improvement store network in Finland. All Rautia stores are run by retailer entrepreneurs.

www.rautia.fi

Onninen

Onninen is one of the leading providers of HEPAC and electrical products and services in the Baltic Sea Region and Scandinavia.

www.onninen.com

Byggmakker

Byggmakker is a key building and home improvement trade operator in Norway. Its store network extends throughout the country and B2B customer expertise is extremely strong. Nearly all of the Byggmakker stores operate under a retailer business model.

www.byggmakker.no 

Senukai

Senukai's stores in Lithuania offer customers wide selections of non-food products with special emphasis on products related to building and living.

www.senukai.lt

OMA

OMA is the largest building and home improvement store chain in Belarus.

www.oma.by

Rautakesko B2B Service

Customers of Rautakesko B2B Service include large national and regional construction companies, property maintenance companies, customers from the house building industry and other business customers. The strength of the B2B Service is its wide selections of building and home improvement products and close cooperation with K-rauta and Rautia store networks through which warehouse deliveries are made.

www.yrityspalvelu.fi

Asko

Asko is the best-known and most trusted brand in the Finnish furniture and home decoration business. Asko provides quality-conscious customers with a competitive collection and the most active and reliable service in the sector. Asko has stores in Finland and Estonia, and it also runs an online store in Estonia.

www.asko.fi

Sotka

In addition to its affordable and comprehensive product selection, Sotka is known for providing an easy shopping experience for customers looking for furniture. Sotka has stores and an online store both in Finland and Estonia.

www.sotka.fi

Agricultural and machinery trade chains

K-maatalous

In Finland, agricultural customers are served by a comprehensive network of K-maatalous stores. K-maatalous retailers' customers include agricultural entrepreneurs, machinery contractors, and equestrian professionals and enthusiasts. Many K-maatalous stores operate in connection with Rautia stores.

www.k-maatalous.fi

Konekesko

Konekesko is a machinery trade company that focuses on importing, selling and providing after-sales service for construction, materials handling, environmental and agricultural machinery, and recreational machinery. Konekesko operates in Finland, Estonia, Latvia and Lithuania.

www.konekesko.com

Leisure goods trade chains

Intersport, Intersport.fi

The Intersport chain's stores and online store provide customers with products and equipment for active sports, keeping fit and for leisure activities.

www.intersport.fi

Budget Sport, Budgetsport.fi

Budget Sport stores offer products for physical activities, outdoor sports and leisure easily and affordably. Customers are also served by the diverse Budgetsport.fi online store.

www.budgetsport.fi

Kookenkä, Kookenka.fi

Kookenkä is Finland's biggest speciality shoe store chain for the whole family. Kookenkä also operates an online store.

www.kookenka.fi

The Athlete's Foot

The Athlete's Foot is a global retailer for trendy athletic footwear and apparel, represented in 27 countries worldwide carrying some of the world's most renowned brands. 

www.theathletesfoot.fi

Market in 2015

The market in the building and home improvement trade by country, along with the change from the previous year (retail trade, VAT 0%)

The total market in the entire operating area of the building and home improvement trade is around €23 billion*
Finland €3.1 billion (-2.9%), (RaSi ry)
Sweden €4.3 billion (12.3%), (HUI)
Norway €4.0 billion (5.5%), (Virke)
Estonia €0.4 billion (7.0%)*
Latvia €0.4 billion (4.0%)*
Lithuania €0.5 billion (2.0%)*
Russia €9.2 billion (-6.0%), (PMR)
Belarus €1.4 billion (14.4%)

*The interior decoration items and furniture trade is worth around €1.5 billion (-0.6%) (Statistics Finland)

The agricultural and machinery trade market, along with the change from the previous year (retail trade, VAT 0%)

The agricultural trade market is worth around €2 billion and decreased from the previous year. In Finland, the total market for Konekesko's product areas is around €1.0 billion and it decreased from the previous year. In Baltic countries, the total market for Konekesko's product areas is around €0.5 billion and it increased from the previous year.

*The speciality goods markets in Finland, along with the change from the previous year (retail trade, VAT 0%)

The sports trade is worth about €0.8 billion (6.6%), (Statistics Finland)
The shoe trade is worth about €0.3 billion (-4.0%), (TMA and Kesko's own estimate)

* Kesko's own estimate

 

Market shares in 2015

Building and home improvement trade

Finland 40% (RaSi ry). Main competitors: STARK, Kodin Terra, S-rauta and Bauhaus
Sweden 5% (HUI and Kesko's own estimate). Main competitors: Bauhaus, Byggmax, Beijer Bygg, Woody Bygghandel and XL Bygg
Norway 17% (Virke and Kesko’s own estimate). Main competitors: Monter/Optimera, Maxbo, Coop and XL Bygg
Estonia 24%*. Main competitors: Ehitus ABC, Bauhof, Espak and Bauhaus
Latvia 12%*. Main competitors: Depo DIY and Kursi
Lithuania 30%*. Main competitors: Ermitazas, Moki-Vezi and Lytarga 
Northwestern and central Russia 7%* (St. Petersburg and Moscow). Main competitors: Leroy Merlin, OBI, Castorama, Maxidom and STD Petrovich
Belarus 10%*. Main competitors: Novoselkin and Materik

Furniture trade

Asko and Sotka
Finland 23%*
Competitors: furniture stores

Agricultural trade

Finland 27%*.
Main competitors: DLA (Hankkija Oy) Turun Konekeskus/Konefarmi and Raisioagro

Machinery trade

Finland (source: Trafi)
Outboard motors** 45% (Yamaha)
Boats** 21% (Yamarin, Suvi)
Motorcycles** 21% (Yamaha)
Tractors** 9% (Massey Ferguson)
Light < 750 kg transportation trailers 15% (Muuli)

** registered

Baltic countries 20% (Kesko’s own estimate)

Sports trade

Intersport, Budget Sport and Kesport
Finland 31% (Statistics Finland and Kesko's own estimate)
Competitors: Sportia, Top Sport, Stadium, XXL Sport & Outdoor, department stores and hypermarkets and other speciality sports stores

Shoe trade

Kookenkä and Kenkäexpertti
Finland 10%*
Competitors: other speciality stores, department stores, hypermarkets, sports stores and online stores

* Kesko’s own estimate

Net sales in 2015

Operating profit excluding non-recurring items in 2015

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