Real estate operations

For Kesko, the store site network is a strategic competitive factor which provides opportunities for developing business operations and increasing sales and customer satisfaction. The importance of a multi-channel approach is growing in the retail trade, and the increase in e-commerce and e-services combined with a comprehensive store site network is Kesko’s key competitive factor.

Kesko Group’s strategic store sites are properties that are or can be developed into large retail units. They involve important business interests related to the continuity of management, the flexibility of change and the financial value of the premises. In order to protect such interests, Kesko usually prefers to own these properties.

Standard properties are premises owned by Kesko Group, including large properties, without a significant development need, which can be sold and leased back for the Group's business operations. In 2014, a total of 54% store sites were classified as strategic.

Capital expenditure

In view of Kesko’s growth, key capital expenditure comprises grocery trade properties in the largest growth centres in Finland as well as accurately targeted capital expenditure in food store sites and building and home improvement store sites in Russia. Kesko makes capital expenditure only in properties needed in its own or supporting business operations.

The needs of multi-channel business are taken into account when planning new premises and refurbishing the existing ones. As a result of Kesko's internationalisation, capital expenditure outside Finland has become increasingly important.

A real estate investment company will be set up

On 8 May, 2015, Kesko Corporation, the Swedish life insurance company AMF Pensionsförsäkring AB and Ilmarinen Mutual Pension Insurance Company agreed to set up a joint venture called Ankkurikadun Kiinteistöt Oy with equal shares. The joint venture will own, manage and develop store sites acquired to it and primarily used by Kesko Group.

Read more: Stock exchange release on 8 May 2015

Kesko is committed to improving energy consumption

Kesko participates in the national energy efficiency agreement, in which we are committed to improving our annual energy consumption by 65 GWh by the end of 2016 through various actions. This amount corresponds to the annual energy consumption of some 3,200 one-family houses. During 2014, Kesko improved its energy consumption by 59 GWh and achieved 90% of the objective.

We are constantly developing new energy efficient solutions for construction and real estate use and briefing retail store staff. To enable improvement in energy efficiency, we use a comprehensive monitoring system of energy consumption and remote monitoring of building automation as a part of our daily maintenance.

In 2014, the combined electricity consumption of all properties was calculated to be 754 GWh, compared with 764 GWh in 2013. Despite the slight increase (0.9%) in the property area, total electricity consumption decreased by 1.3%.

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 the construction of new buildings and the refurbishment of existing ones solutions that decrease the consumption of materials and energy during the life cycle of the property are introduced. Kesko’s aim is to achieve the lowest life-cycle costs in the trading sector while also ensuring that optimum conditions are maintained for customers, employees and products. Optimum conditions must be taken into account from planning and construction onwards.

Retail stores' energy efficient solutions, such as lids and doors on refrigeration equipment, recovery of condensation heat, refrigeration equipment that uses carbon dioxide, and adjustable and directional lighting provide considerable energy savings.

All new K-food stores have refrigeration equipment with lids and doors. Chest freezers covered with lids help save 40% more energy than uncovered ones.

The new signs of all K-Group stores use LED lighting. This results in savings of 60–70% compared to traditional neon and fluorescent tube solutions.

Read more: Kesko will build a new and modern shopping centre in the area of the current K-citymarket in Itäkeskus, eastern Helsinki.

To top