Kesko Food to improve operational efficiency and reform the organisation

Kesko Food will reorganise its operations for instance in marketing, logistics and the purchasing of home and speciality goods for the K-citymarket chain. At the same time, Kesko Food and K-Plus Oy will intensify their co-operation in support services provided for the chains.

 

The co-operation procedure related to the organisational reform will concern Kesko Food and K-Plus Oy on a large scale. The impact will be the greatest in Helsinki and Tampere. The estimated total need for reduction is about 160 jobs. During the procedure, opportunities for training or reassignments of as many persons as possible will be examined. Pension solutions will also be assessed. Negotiations are expected to terminate by the end of May.

 

These activities aim at annual savings of over 20 million euros. 

 

As part of the changing process Kesko Food will during this year offer retailers new agreements that will enhance chain co-operation. The joint selection of the chains will expand and joint pricing will increase. The basis of how the fees charged from retailers are determined will change from net sales to gross profit.

 

The following persons will be responsible for the implementation of Kesko Food's development plan in different units and chains: Executive Vice President Harri Sivula (Category Management, IT and logistics), Vice President Kari Kivikoski (K-citymarket), Vice President Ari Virnes (K-supermarket), Vice President Eija Jantunen (K-market and K-extra), Managing Director Minna Laakkonen (Kespro Ltd), Managing Director Mika Rautiainen (Cassa Oy), Managing Director Niila Rajala (K-Plus Oy and Customer Relationship and Human Resources) and Vice President Jukka Sipilä (Retail Stores and Accounting).

 

Further information:
Terho Kalliokoski, Kesko Food's President (as from 1 May 2005), tel. +358 1053 22166
Harri Sivula, Kesko Food's Executive Vice President, tel. +358 1053 22213

 

KESKO CORPORATION

 

General Counsel
Anne Leppälä-Nilsson

DISTRIBUTION

Helsinki Stock Exchange
Main news media