Building and technical trade

Kesko's building and technical trade division offers its consumer and business customers comprehensive selections of building and home improvement products, as well as electrical and HEPAC products, the most comprehensive store network in Northern Europe, online stores and digital services. The division also includes business operations of the furniture trade, machinery trade, and the leisure goods trade.

The building and technical trade has operations in Finland, Sweden, Norway, Estonia, Latvia, Lithuania, Poland, Russia and Belarus. At the end of 2016, the division had 15,630 personnel. In the building and technical trade, Kesko is the market leader in Finland and in the building and home improvement trade, the fifth biggest operator in Europe.

The acquisition of Onninen, completed in June 2016, makes Kesko a significant operator on the Northern European technical wholesale market. The unique combination of the building and technical trade enables us to offer business customers in the building sector the most diverse entity of products and related services on the market.

The chains in the building and home improvement trade are K-Rauta, Byggmakker, K-Senukai and OMA. Rautakesko B2B Service serves major business customers in the building and home improvement trade in Finland. Onninen delivers products and service packages to contractors, industry and infrastructure as well as retail dealer customers. In all, there are around 140 Onninen Express stores and Onninen points of sale.

Approximately 65% of sales in the building and technical trade come from B2B customers. The building and home improvement trade operations in the Baltic countries and Belarus were centralised at Kesko Senukai as the result of an arrangement carried out in April 2016, enabling them to be managed as a single entity. Kesko Senukai is the clear market leader in the region, and major growth potential is foreseeable in its business.

The building of the new K-Rauta chain began in June when the decision was taken to combine the K-Rauta and Rautia chains to form Finland's largest building and home improvement trade chain and also to update the K-Rauta brand. The K-Rauta brand will be revamped in all of the operating countries in phases.

The own brands of the building and home improvement trade – Cello, PROF, FXA and Fiorin – offer customers reliable and inexpensive home and garden products, as well as building and renovation tools. Among Onninen's own brands, Onnline offers electrical, HEPAC and refrigeration products for B2B customers. The electrical and HVAC products under the OPAL brand are primarily designed for B2C customers.  

In addition to online stores, the furniture trade chains Asko and Sotka serve their customers with 86 physical stores in Finland and 10 in Estonia. Konekesko machinery has sales functions in the Baltic countries in addition to Finland.  

The chains in the leisure goods trade are Intersport, Budget Sport, The Athlete’s Foot and Kookenkä. Intersport Finland Ltd with its chains is Finland's market leader in the sports trade. The chains are part of the international Intersport chain, which nowadays operates in 66 countries on six continents. The Athlete’s Foot, a new chain in Finland, began operating in 2016 with a focus on athletic leisure footwear. Kenkäkesko Ltd is the chain unit for the Kookenkä stores. In addition to the extensive network of store sites, all of the leisure goods chains have their own websites and online stores, which are constantly increasing in importance in the retail trade.  

Competitive advantages

  • Chain concepts and service entities based on customer needs
  • Ability to serve different customer groups from the same store network
  • Comprehensive store network and extensive electronic services
  • Efficient combination of online stores and traditional store network
  • Professional customer service in-store and in electronic channels
  • Well known, reliable store chains and product brands
  • Efficient procurement and logistics
  • Internationally harmonised operating models

Building and technical trade chains

K-Rauta

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

www.k-rauta.com

Byggmakker

Byggmakker is one of the leading operators in the building and home improvement trade in Norway. It offers a store network covering the entire country and very strong B2B expertise. Nearly all Byggmakker stores operate on the retailer business model.

www.byggmakker.no

K-Senukai

K-Senukai's stores offer extensive non-food product selections to their customers in Lithuania, with a focus on products related to building and living. The K-Rauta stores in Latvia and Estonia will also be refurbished under the K-Senukai concept by 2020.

www.senukai.lt

OMA

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

www.oma.by

Rautakesko B2B Service

The customers of Rautakesko B2B Service are national and large regional building firms, property maintenance companies, the housing industry and other business customers. The strengths of B2B Service are the extensive selections of building and home improvement products and close collaboration with the K-Rauta store network, through which all of the warehouse deliveries take place.

www.yrityspalvelu.fi

Onninen

Onninen Express chain's stores serve business customers. Onninen delivers products and service packages to contractors, industry, infrastructure building and retail dealers. The stores' selection includes HVAC, electrical and refrigeration products as well as other technical products. Customers can collect products for their daily needs from the Onninen Express stores' selection. They can also order products from the warehouse selection for collection from the store. In all, there are around 140 Onninen Express stores and Onninen points of sale Finland, Sweden, Norway, Estonia, Latvia, Lithuania, Poland and Russia.

The Elfin chain operations include around 190 independent electrical contractors with which Onninen collaborates across Finland.

The Hanakat chain is a retail network comprising around 80 independent HEPAC entrepreneurs in Finland.

The Elfag chain is one of Norway’s biggest electrical contractor chains including around 150 business members.

www.onninen.com

 

Konekesko

Konekesko is a machinery trade company that focuses on importing, selling and providing after-sales services 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

Intersport is Finland's market leader in the sports trade. Together with retailer entrepreneurs, it employs almost 1,000 people in 57 stores and one online store. The chain's success is based on extensive selections of sports and leisure products, good service, high-quality products, diverse maintenance services and on providing an expert shopping experience, both in-store and online.

www.intersport.fi

Budget Sport, Budgetsport.fi

There are ten Budget Sport stores in different parts of Finland. The stores aim to provide their customers with sports trade products more quickly, easily and inexpensively than their competitors. A diverse online store complements the customer experience.

www.budgetsport.fi

The Athlete’s Foot, theathletesfoot.fi

The Athlete’s Foot is a retailer of sporty leisure footwear, trainers and clothing. The chain represents the world's best known sports goods brands and models, and it aims to promote its customers' passion for sport and bring a touch of style into their lives.

www.theathletesfoot.fi

Kookenkä, Kookenka.fi

Kookenkä is Finland’s largest shoe store chain for the whole family. The chain's 37 stores and online store cover the entire country.

www.kookenka.fi

Furniture trade chains

Asko

Asko is the best known and most trusted Finnish furniture and interior decoration brand. Asko provides quality conscious customers with a competitive collection and the most active and reliable service in the sector. Asko has stores and online stores in Finland and Estonia.

www.asko.fi

Sotka

Sotka is a Finnish provider of furniture and a home decoration company full of pleasant surprises. It offers solutions suited to the changing needs of its customers. Sotka has stores and an online store in Finland and Estonia. 

www.sotka.fi

Markets in 2016

The building and home improvement trade market 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 worth around €22 billion*

Finland €3.1 billion (1.5%), (RaSi ry, Finnish Hardware Association, DIY)
Sweden €4.2 billion (4.4%), (HUI)
Norway €4.0 billion (4.8%), (Virke)
Estonia €0.4 billion (8.1%)*
Latvia €0.4 billion (1.9%)*
Lithuania €0.5 billion (2.6%)*
Russia €8.3 billion (1%)*
Belarus €1.1 billion (10%)*

The market of Onninen by country, along with the change from the previous year (retail trade, VAT 0%)

Finland €2.0 billion (4.7%), (STK, LVI-TEK)
Sweden €3.5 billion (6.0%), (SEG, RGF)
Norway €1.3 billion (3.6%), (EFO)
Poland €4.4 billion (-5%)*
Estonia €0.3 billion (6.2%)*
Latvia €0.3 billion (-15.6%)*
Lithuania €0.4 billion (1.2%)*

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

In Finland, the total market for Konekesko’s product areas is around €0.9 billion and it decreased slightly from the previous year. In the Baltic countries, the total market for Konekesko's product areas is around €0.6 billion and it increased clearly from the previous year.*

The leisure goods market in Finland, along with the change from the previous year (retail trade, VAT 0%)

The sports trade is worth around €0.9 billion (3.6%), (Statistics Finland)
The shoe trade is worth around €0.3 billion (2.3%), (Textile and Fashion Suppliers and Retailers Finland TMA and Kesko’s own estimate)

The furniture trade market in Finland, along with the change from the previous year (retail trade, VAT 0%)

The interior decoration items and furniture trade is worth around € 1.5 billion (1.8%) (Statistics Finland) 

* Kesko’s own estimate

Market shares

Building and home improvement trade

Finland 41% (RaSi ry, Finnish Hardware Association, DIY). Main competitors: STARK, S Group and Bauhaus
Sweden 5% (HUI and Kesko's own estimate). Main competitors: Woody, XL Bygg, Beijer and Bauhaus
Norway 16% (Virke and Kesko’s own estimate). Main competitors: Optimera/Monter, Mestergruppen, Coop and Maxbo
Estonia 24%*. Main competitors: Ehitus ABC, Bauhof, Espak and Bauhaus
Latvia 11%*. Main competitors: Depo DIY and Kursi
Lithuania 30%*. Main competitors: Ermitazas, Moki-Vezi and Lytarga
Russia 2%*. Main competitors: Leroy Merlin, OBI, Castorama, Maxidom and Petrovich
Belarus 10%*. Main competitors: Mile, Materik and Praktik

Onninen

Finland 37% (STK, LVI-TEK). Main competitors: LVI Dahl, Ahlsell, SLO and Rexel
Sweden 6% (SEG, RGF). Main competitors: Ahlsell, Dahl, Elektroskandia ja Rexel
Norway 20% (EFO). Main competitors: Elektroskandia, Solar and Ahlsell
Poland 5%*. Main competitors: TIM, Sonepar, Grodno, Bims, Tadmar (Saint-Gobain) and Grudnik
Estonia 13%*. Main competitors: FEB (Ahlsell), SLO and W.E.G (Würth)
Latvia 4%*. Main competitors: Sanistal, EVA-SAT and SLO
Lithuania 4%*. Main competitors: Sanistal, Dahlgera (Dahl) and Elektrobalt (Würth)

Machinery trade

Finland (source: Trafi)

Outboard motors** 45% (Yamaha)
Boats** 23% (Yamarin, Suvi)
Motorcycles** 23% (Yamaha)
Tractors** 10% (Massey Ferguson)
Light < 750 kg transportation trailers 15% (Muuli)
** To be registered

Baltic countries 19% (Kesko’s own estimate)

Sports trade

Intersport, Budget Sport, The Athlete's Foot and Kesport
Finland 30% (Statistics Finland and Kesko's own estimate). Competitors: Stadium, XXL, Sportia, Top Sport

Shoe trade

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

Furniture trade

Asko and Sotka
Finland 23%*. Competitors: IKEA, JYSK, Masku and Isku

* Kesko’s own estimate

Net sales in 2016

Comparable operating profit in 2016

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