Kesko to purchase plots in Lahti in a continued effort to update its network of grocery store sites in line with its growth strategy

Investor news / 13.11.2023 10:00

Kesko has purchased two plots at Kauppakatu 16 in the city of Lahti from Luhta-Kiinteistöt Oy. The deal is part of Kesko’s growth strategy, which involves updating existing grocery stores and opening several new ones in Finnish growth centres in upcoming years. Sales of Kesko’s K-Citymarket hypermarket stores in particular have been growing considerably, and the hypermarkets have a crucial impact on the profitability and market share of Kesko’s grocery store business.

Kesko intends to use the purchased plots to build a new hypermarket. The store will replace the K-Citymarket in Paavola, which was the first ever hypermarket opened in Finland. The new K-Citymarket, totalling some 9,500 square metres, is expected to open in 2026. The block in which the plots are situated will also house new residential and office buildings.

”We are constantly updating and strengthening our store site network, and we are very happy to start the next chapter of the 50-year-old K-Citymarket Paavola in modern new facilities. When it comes to opening new stores, our main focus is on growth centres. The hypermarket stores Kesko is set to open in the next couple of years will have a significant role in strengthening our market share and further growing our sales,” says Ari Akseli, President of Kesko’s grocery trade division.

Kesko has previously announced that it will build a K-Citymarket store in Kivistö, Vantaa, and there are plans to build new hypermarket stores in Kuopio and Porvoo. In addition, Kesko has acquired a majority holding in the Espoontori shopping centre in Finland’s second biggest city Espoo, with the intention of continuing the development of commercial services in the area. Meanwhile, the K-Supermarket store in Vuosaari in Eastern Helsinki will double in size and be converted into a K-Citymarket hypermarket store.

”We have invested some €1 billion in updating K Group grocery stores in recent years. In line with Kesko’s growth strategy, we annually invest some €200-250 million in developing our grocery store network,” says Akseli.

Further information is available from Ari Akseli, President, grocery trade division, tel. +358 105 323 490, Mika Sivula, Regional Director, tel. +358 105 322 441, and Hanna Jaakkola, Vice President, Investor Relations, tel. +358 105 323 540. K Group media desk tel. +358 105 350 200 (Mon-Fri from 9 to 4), viestinta@kesko.fi

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