Cooperation between K-retailers and
Kesko – chain operations – is based on
the equality of both parties, their voluntary
participation, willingness to develop
joint operations and on open cooperation.
The objective is improving competitiveness
and performance, increasing
uniform quality and lowering costs.
The obligations and rights of K-retailers
and Kesko have been specified in the
chain agreement.
Competitive edge is gained by combining
systematic chain operations and the
K-retailer operations based on entrepreneurship.
Kesko is responsible for the
constant development of the business
model and the store concepts, for chain
operations management and for sourcing
and purchasing of the products included
in the chain selections. The K-retailer
entrepreneur is responsible for his/her
store's customer satisfaction, personnel
and profitability of business.
To ensure success, it is important that
a new retailer's professional and other
skills are at as high level as possible at
the start of his/her career.
About 200 stores are affected by retailer
changes annually in the K-Group. The
annual need for new entrepreneurs,
ready to start their K-retailer careers, is
approximately 100.
The K-Group systematically trains new
retailers to ensure a sufficient supply of
people with the appropriate professional
skills. New candidates interested in a
K-retailer career are sought through different
channels. There are about 500
contacts annually. The requirement for
new retailers is estimated for 1–3 years
ahead.
The K-retailer trainee programme offers
three alternative paths: a comprehensive
programme, an intensive programme and
the retailer entrepreneur path in polytechnics.
Approximately 50% of those starting
the programme have a fair amount of
retailing experience, but in recent years
the number of students transferring from
other fields or having just finished their
general education has grown. Before
selection to the K-retailer trainee programme,
the applicants are evaluated
with regard to their development potential,
values, work experience and education.
After selection, would-be K-retailers
start the K-retailer trainee programme,
which consists of three parts: practical
training in a retail store under the guidance
of a mentor, theoretical training at
the K-instituutti training centre, and
regional K-trainee seminars.
Approximately 100 K-retailer trainees
complete the programme every year. After
completion, the trainees are ready to
start as independent K-retailer entrepreneurs.
The K-Group gives its retailers strong
background support and opportunities
for further training and progress in their
careers.
Competitive advantage from chain operations and K-retailer enterprise
The K-Group's principal business model in Finland is the chain business model, in which independent K-retailers run retail stores in the chains managed by Kesko. At the end of 2008, Kesko had 1,305 K-retailer entrepreneurs as partners, as well as about 250 other retailer partners.