Interim report 1 Jan. -30 September 2024: A turn for the better in building and technical trade
K Group’s grocery trade market share 36.6% in 2021 – leading operator in online grocery
K Group’s share of the Finnish grocery trade market totalled 36.6% in 2021. The biggest growth was seen in our K-Citymarket hypermarket chain, where sales were up by 3.9% compared to 2020. It was also the chain that was best able to grow its sales organically without new additions to the chain store network. In online grocery, K Group estimates it was the market leader with a market share of approximately 45%. The data is based on Nielsen’s Grocery Shop Directory published today.
Nielsen publishes its Grocery Shop Directory annually. It measures the Finnish grocery trade market as a whole, covering the sales of physical and online stores selling groceries.
“In grocery trade, we target profitable growth, and were successful in achieving this also in 2021. Our sales grew, customer satisfaction improved, and profitability strengthened,” says Ari Akseli, President of Kesko’s grocery trade division.
Overall, K Group’s growth came largely from existing stores. We invested €101 million in the store network during the year, and the focus of these investments was on modernising existing store sites.
“The K-retailers in charge of the stores are forerunners in driving change in Finnish grocery trade. Once again their efforts gained international recognition, when the K-Citymarket Tammisto hypermarket was included among IGD’s Must See Stores of 2022. We use customer data to shape our stores and their selections and services to suit each store’s local customer base. All our stores emphasise sustainable, high-quality selections that set them apart from competition, as well as individuality, easy shopping, and prices," says Akseli.
K Group the leading operator in online grocery
According to Nielsen’s data, online grocery sales totalled €536 million in Finland in 2021, up by 35.8% on the year before. K Group’s online grocery sales totalled some €239 million. We estimate that K Group was the market leader in Finnish online grocery in 2021 with a market share of approximately 45%.
“Demand was strong in our online grocery operations. More than 520 K Group grocery stores now offer online grocery services, and the number of deliveries totalled some 1.8 million in 2021. Great customer experiences are crucial for us also when it comes to online shopping: we offer the most extensive online grocery selection on the market, comprising as many as 40,000 items, as well as local specialties and the most versatile selection of delivery options. Customer satisfaction indicators are very high, which shows that we are on the right track. We continue to develop our operations also in 2022,” says Ari Akseli.
Kesko's grocery trade division also includes the operations of Kespro, which serves customers in foodservice.
“Kespro’s market share has grown especially well and it is the undisputed market leader in its field. If we look at food trade as a whole – including foodservice sales – we estimate that our share of the total market is some 38%,” says Akseli.
K Group grocery store numbers on 1 January 2022 according to Nielsen (comparison figures for 1 Jan. 2021)
- K Group grocery stores, total: 1,230 (1,230)
- K-Citymarket: 81 (81)
- K-Supermarket: 244 (241)
- K-Market 768 (769)
- Neste K: 69 (70)
- Other: 68 (69)
NB. Due to the inclusion of new markets in 2016, Nielsen market share figures published after 2016 are not comparable with the figures of years preceding that.
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