Frontpage Divisions Home and speciality goods trade

Home and speciality goods trade

The home and speciality goods trade comprises Anttila and Kodin Ykkönen, K-citymarket’s home and speciality goods, Intersport and Budget Sport, Asko and Sotka, Musta Pörssi and Konebox, and Kookenkä and Andiamo. In addition to 450 stores, all home and speciality goods chains also serve customers online.

Kesko's home and speciality goods trade provides customers with products and services related to clothing, home, sports, leisure, home technology, entertainment, as well as interior decoration and furniture. Efficient chain operations ensure that there is a wide and price competitive selection of well-known domestic and foreign product brands available to customers.

In addition to more than 450 physical stores, customers can buy products and services with direct home delivery from six online stores. Alternatively, customers can choose to receive the products at their nearest store. In some of the chains, such as Kodin Ykkönen, a sales assistant can order a product for the customer from the chain's online store, the wide selection of which complements the selection found in the physical stores. Some of the chains are also accessible via social media.

Entertainment, fashion and home goods from anttila

Anttila retails entertainment, fashion and home goods. In Anttila's business, the extensive store network and online stores provide seamless support to each other. Customers in Finland are served by 30 Anttila department stores, 10 Kodin Ykkönen department stores for interior decoration and home goods, the NetAnttila.fi and Kodin1.com online stores, and the digianttila.com download store. The NetAnttila online store also operates in Estonia and Latvia.

Anttila department stores offer wide selections of home goods, casual clothing and entertainment at low prices. Kodin Ykkönen provides smart, up-to-date products and services for home decoration.

Anttila's new logistics centre in Kerava, which started operations in August 2011, greatly enhances the chain's online and department store logistics while also improving space and energy efficiency. The new centre handles deliveries to all Anttila and Kodin Ykkönen department stores and to NetAnttila customers.

Diverse selections of home and speciality goods in K-citymarkets

K-citymarket is a diversified and favourably priced hypermarket chain, which provides wide selections of groceries and home and speciality goods. In addition, the cmstore.fi download store provides music and talking books. K-citymarket Oy is responsible for the home and speciality goods business in the stores, while K-retailer entrepreneurs are responsible for the food business. There are 75 K-citymarkets.

The store network expanded significantly in 2011. Six new hypermarkets were opened: in Vantaa, Jyväskylä, Seinäjoki, Hämeenlinna, Lahti and Äänekoski.

intersport encourages physical activities

Intersport Finland's retail store chains in Finland are Intersport, Budget Sport and Kesport. There are 56 Intersport stores, seven Budget Sport stores and 32 Kesport stores in Finland, of which 85 are owned by retailer entrepreneurs and 10 by Intersport Finland.

Intersport is part of the international sports trade chain, in which Kesko is a partner. The Intersport chain is the market leader in Finnish sports retailing. The stores of the chain provide customers with clothing and equipment needed for active sports, keeping fit and leisure purposes. Expert staff advise and assist customers in questions related to physical activities and keeping fit.

The Intersport licence and business operations in Russia were transferred to a Kesko subsidiary in August 2011. There are 36 Intersport stores in the country, located in shopping centres mainly in and around St. Petersburg and Moscow. There are few sports stores like Intersport which sell several brands in Russia.

Budget Sport stores offer branded products for physical activities, outdoor sports and leisure easily and at favourable prices. Customers are also served by the budgetsport.fi online store.

Kesport stores, located in smaller rural centres, are the leading sports stores in their areas and provide their customers with expert service and help.

Store network for asko and sotka was revised

Asko and Sotka are Kesko-owned Indoor's retail store chains selling furniture and interior decoration items. Asko provides home decorators with a wide range of furniture and interior decoration items combined with active and reliable service. Sotka's main target group consists of customers who value low prices and easy shopping.

The Asko and Sotka chains consist of 81 stores in Finland and seven stores in Estonia. In 2011, the store network was revised actively. Nine stores were opened, two of which were new and seven replaced former stores.

New features were made available on the chains' websites, such as the 3D design programme for making shopping easier. Cooperation with the Allergy and Asthma Federation continued. There are products with an allergy label available in the Asko Bonnell mattress range and Puro sofas.

Musta Pörssi chain in Change

Musta Pörssi Ltd has two retail chains: Musta Pörssi and Konebox. Musta Pörssi chain offers its customers home technology products and related services. Customers can have all home technology installed ready to use, if they so wish. Konebox online store competes with quality products and low prices.

The focus in the home technology trade is increasingly on e-commerce. It is easy to compare products online and customers are price-conscious.

There are 32 Musta Pörssi stores, of which 31 are owned by retailer entrepreneurs. For reorganisation purposes, in 2011, the store network was reduced by 14 sites from the previous year. The Konebox chain consists of two stores and an online store.

New Kookenkä chain started in autumn 2011

Kenkäkesko's retail store chains are K-kenkä, Andiamo and Kookenkä, launched in September 2011. The new Kookenkä chain is based on the best parts of the K-kenkä and Andiamo store concepts, combined with new inspiring elements and colour scheme. The stores offer a high-quality selection of shoes and service for customers who value trends and fashion, as well as comfort, practicality and branded goods. Andiamo, one of Finland's best-known shoe brands, continues as Kenkäkesko's own fashion brand.

There are 49 chain stores. The K-Group's shoe outlets also include 23 Kenkäexpertti stores, which serve customers in smaller towns. 69 of shoe stores are run by retailer entrepreneurs.

Internet supports customers

In 2011, home and speciality goods chains reached out to consumers on the web. The chains became active in social media and had a positive reception. In their communications, home and speciality goods chains use Facebook, Twitter, YouTube, Foursquare and Google+ services. K-citymarket's Facebook site attracted more than 40,000 fans during the first month. The aim is to be present where people talk.

The service of home and speciality goods chains' online stores has been improved, for example, by introducing a package pick-up service from department stores, introducing selections to price comparison pages, adding videos and opening gift and selection engines. The chains' web site content has been complemented by adding product information and increasing other content. Visibility through search engines has also been increased.

The emphasis in marketing will shift from traditional to electronic channels. Kesko has been among the first in Finland to introduce new operating models, for example, by testing Facebook Deals in K-citymarkets and starting cooperation with fashion bloggers.

Strategic emphasis on expanding e-services

Competition in the home and speciality goods trade is becoming more international and the proportion of online business out of total sales in the sector continues to increase. Customers' purchasing behaviour is more individual than before and there are more channels of interaction between stores and customers.

The key objective in Kesko's home and speciality goods chains is to offer customers a shopping experience that seamlessly combines the services of an online store and a traditional store. The emphasis is on expanding the store network, online stores and electronic services.

Home and speciality goods chains' competitiveness in e-commerce is strengthened with a common online store platform. This makes shopping easier and adds new opportunities to targeted marketing.

Intersport Russia aims to double its store site network by the end of 2015. The growth will be focused in the Moscow economic zone.

Responsibility is gaining importance in purchasing decisions. The operations of the home and speciality goods chains are guided by responsible operating practices, which is reflected in stores and selections, for example, in the form of environmental certificates, Swan and Key Flag symbols, and the symbols of the Allergy and Asthma Federation.

Home and speciality goods market

The total Finnish market for home and speciality goods is estimated to be approximately €9.5 billion (VAT 0%). Market development in the home and speciality goods sector varies according to the product line.

In Finland, the estimated sports trade market totals €740 million (VAT 0%) and decreased by 2.5%.

In Finland, the estimated market for interior decoration items and furniture is €1.6 billion (VAT 0%), representing an increase of 3% from the previous year.

The Finnish market for home electronics and entertainment is estimated to total around €1.7 billion (VAT 0%), representing an increase of about 10%.

The Finnish shoe trade market is estimated to total around €441 million (VAT 0%) and increased by about 1% from the previous year.

Operating environment

Hypermarket and department store trade

K-citymarket home and speciality goods, Anttila, Kodin Ykkönen and NetAnttila, the market share cannot be reliably calculated
Competitors: department stores, hypermarkets, speciality store chains and online stores

Sports trade

Intersport, Budget Sport and Kesport
Market share in Finland 34%*
Competitors:Sportia, Top Sport, Stadium, department stores and hypermarkets and other speciality sports stores

Furniture trade

Asko and Sotka
Market share in Finland 22%*
Competitors: furniture and interior decoration stores

Home technology trade

Musta Pörssi and Konebox
Market share in Finland 6%*
Competitors: stores specialised in home technology, hypermarkets and online stores
*(own estimate)

Shoe trade

K-kenkä, Andiamo, Kookenkä,
Kenkäexpertti
Market share in Finland 10% (Association of Textile and Footwear Importers and Wholesalers, own estimate)
Competitors: other speciality stores, department stores, hypermarkets, sports stores and online stores

K-Group's home and speciality goods trade, number of stores, and retail and B2B sales	Number		Sales, (VAT 0%) € million
	2011	2010	2011	2010
K-citymarket, home and speciality goods	75	69	629	603
Anttila department stores	30	31	269	295
Kodin Ykkönen department stores for interior decoration and home goods*	11	10	133	132
Distance sales (mail order and NetAnttila)	1	1	65	72
Intersport	56	56	193	207
Buget Sport*	8	6	32	31
Kesport	32	35	23	25
Asko	32	31	91	80
Sotka	49	48	103	86
Musta Pörssi	32	46	78	105
Konebox*	3	3	14	14
Shoe stores	72	82	44	48
Home and speciality goods stores, Finland	401	418	1.673	1.696
Anttila, Baltic countries (NetAnttila)	2	2	8	8
Indoor, Baltic countries	7	7	8	7
Intersport, Russia	36	-	7	-
Home and speciality goods stores, other countries	45	9	23	15
Home and speciality goods trade, total	446	427	1.697	1.712
* incl. online sales
Home and speciality goods trade segment’s key figures			2011	2010
Net sales		€ million	1.564	1.569
Operating profit		€ million	37.0	103.4
Operating profit excl. non-recurring items		€ million	36.6	66.0
Operating profit as % of net sales excl. non-recurring items		%	2.3	4.2
Capital expenditure		€ million	61.8	45.3
Return on capital employed* excl. non-recurring items		%	8.4	15.3
Personnel average			5.754	5.418
* cumulative average
Home and speciality goods trade segment’s net sales in 2011			€ million	Change, %
K-citymarket, home and speciality goods			642	3.5
Anttila			474	-6.0
Intersport, Finland			170	-2.0
Intersport, Russia			7	-
Indoor			178	15.3
Musta Pörssi			74	-23.2
Kenkäkesko			23	-0.1
Total			1.564	-0.3
Home and speciality goods trade segment’s capital employed at 31 December, € million			2011	2010
Non-current assets			332	315
Inventories			263	231
Short-term receivables			180	162
./. Non-interest-bearing debt			-300	-291
./. Provisions			-4	-9
Capital employed**			472	408
** capital employed at the end of financial year

First Kookenkä stores opened

A new Kookenkä chain is being formed on the basis of current K-Kenkä and Andiamo store concepts. The first store was opened in Tampere in September 2011. The new Kookenkä chain, comprising 50 stores, will be launched across Finland in the spring 2012.