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. In 2016, a total of 64% store sites were classified as strategic.
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 2016, Kesko’s total capital expenditure on store sites was €216.7 (166.7) million.
In view of our growth, key capital expenditure included:
Capital expenditure is made on properties needed for Kesko's own or supporting business operations.
At the end of 2016, the most significant store sites under construction were:
In the near future, Kesko’s most significant store site project will be the new shopping centre, Easton Helsinki, currently being built in Itäkeskus, Helsinki. The capital expenditure of the first phase is valued at €100 million. Its employment impact is about 250 person-years for a period of two years. The first part of Easton Helsinki will open to customers in autumn 2017. The next part is estimated to be completed in 2019. The capital expenditure on the whole complex is valued at over €200 million.
In 2015–2016, our total capital expenditure in business operations, acquisitions excluded, was €500 million. From 2018 onwards, we estimate the annual capital expenditure to remain below €200 million. The strategic objectives are to achieve growth in the Finnish grocery trade, the building and technical trade and the car trade.
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 lifecycle 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, an international environmental classification, BREEAM or LEED, to be carried out by an external assessor is applied to the most significant store site projects.
The following store sites have or will have the BREEAM environmental rating:
It is important to keep an eye on developments in the building and energy sector and anticipate its changes. Technology advances rapidly, consequently development requires expertise to identify the right time to reject technology that is becoming obsolete and adopt technological advances and innovation.
Kesko is participating in the 2017–2025 action plan of the commerce sector's Energy Efficiency Agreement. In accordance with the agreement, we commit to reducing our energy consumption by 7.5% through various energy saving measures. All K Group chain stores are included in the agreement.
The measures include:
Retail stores can achieve significant energy savings by adopting these energy efficient solutions:
Kesko's has around 40 real estate managers helping K-stores find ways to make their energy consumption more efficient while also preparing renovation programmes lasting 5 to 6 years.
Read more about store sites and properties: