Megatrends

The trading sector operations are affected by several global megatrends ranging from the digital revolution to climate change. By identifying the trends that affect K Group’s operations we are able to effectively anticipate future challenges and opportunities and to respond to them ever better.

Global megatrends

Trends affecting K Group's operations

International operators challenge local companies

  • Intensifying price competition
  • Global supply
  • Affordable products are preferred for the shopping basket
  • Sales of own brands are increasing
What we are doing
  • We focus on a more limited number of businesses
  • We differentiate ourselves from the competition with quality and selections
  • We operate with even greater efficiency and quality
  • We continuously expand the selection of affordable and high-quality own brand products

Consumers' knowledge and power has increased

  • Transparency of selections, prices and availability
  • Importance of social media channels: access to information, exchange of experiences and interaction
  • Origin of products and responsibility are important selection criteria
  • Quality and healthiness of food
What we are doing 
  • We make clear customer promises and deliver on them – service, quality, price
  • Marketing and offering will become personalised
  • We provide comprehensive information about products, prices and availability in all channels

Digital store and services

  • Ease of shopping
  • 24/7 availability of services irrespective of place
  • Mobile access plays an important role
  • Targeted marketing based on customer data
What we are doing 
  • We offer an even better customer experience by making use of the possibilities of mobile services, online services and digital marketing
  • We target the offering making it personalised
  • The K-Plussa system is digitalised
  • We build the best mobile services

Individual customer behaviour

  • Ageing population
  • Increase in the number of single-person households
  • Urbanisation
  • Increase in cultural diversity
What we are doing 
  • We create new concepts and retailer models
  • We take local conditions into consideration in stores' operations and service offerings
  • We invest especially in the renewal of neighbourhood retail services
  • We make more extensive use of customer data

Corporate responsibility as well as strong brands and identity are preconditions for success

  • Good corporate governance
  • Responsible operating principles
  • Climate change and circular economy
  • Transparency of purchasing chains
  • Open dialogue with stakeholders
  • Responsible investment
What we are doing 
  • We take care that corporate responsibility is realised in all our operations
  • We promote the use and production of renewable energy
  • We develop innovative circular economy solutions jointly with partners
  • We make efforts to ensure responsibility in the supply chain
  • We strengthen our corporate identity and core brands
  • We make corporate responsibility visible in stores and marketing

 

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Growth drivers

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