The number of chains will be reduced by converting the Quick Shop and K-pikkolo food stores operating at service stations into K-markets, while K-pikkolo neighbourhood stores will be converted into K-markets or K-extras. About ten unprofitable neighbourhood stores will be closed down.
The Cassa discount concept will expand from 26 to approximately 50 stores. In terms of operations, Cassa stores will become part of the K-market chain and they will be named K-market Cassa. Customer service will be improved by introducing Pirkka, the leading Finnish private label, into them. The selections will also be complemented with the best brands of cooperation partners. K-market Cassas will be included in the K-plussa customer loyalty system and based on good experiences gained, in accordance with the new strategy, all of them will be run by K-retailers. Kesko Food's subsidiary Cassa Oy will be responsible for the selections and low price level of K-market Cassas and the K-retailer entrepreneurs for their stores' customer service, staff and condition.
After the changes, all K-markets and K-extras will have a common core selection of approximately 1,000 products and, according to the needs of the local clientele, as many as 5,000 other products. There will be about 500 K-markets and about 250 K-extras in all. Together they will form the leading network of neighbourhood services. To the K-food store customers, the reform will be reflected, above all, in excellent quality and low price level.
In accordance with Kesko Food's new strategy, all K-food stores and service stations will be run by K-retailers by summer 2007.
Further information:
President Terho Kalliokoski, Kesko Food Ltd, tel. +358 1053 22204
Vice President Mika Rautiainen, Kesko Food Ltd, tel. +358 1053 22080