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Finland's Kesko Sees Grocery Sales Up 5.4% In July

Published on Aug 17 2020 9:58 AM in Retail tagged: Trending Posts / Supermarket / Kesko / finland / K-Citymarket / World News

Finland's Kesko Sees Grocery Sales Up 5.4% In July

Finnish retailer Kesko saw sales at its grocery business rise 5.4% in July, to €492.9 million, in what was a positive month for the retailer across the board.

Grocery sales in the group's K-food stores increased by 9.0% in the month, while sales of home and specialty goods were up 5.8% in its K-Citymarket outlets.

Its wholesale business, Kespro, saw sales down 5.8% however, due to coronavirus related restrictions and the continued closure of parts of the HoReCa sector.

Group Performance

On a group level, Kesko saw sales up 2.4% to €970.7 million for the period, while in comparable terms, sales were up 6.4%.

"In comparable terms, sales grew in all divisions. In the grocery trade, food sales continued to grow in K-food stores, also sales of home and speciality goods grew," commented Mikko Helander, Kesko’s president and CEO.

"In the building and technical trade, sales grew in both B2C and B2B trade. Sales in the car trade grew by 14.0%."

The group's Building and Technical Trade division posted sales of €394.5 million in July, an increase of 6.7% in comparable terms in local currencies, with sales up 8.5% in Finland, 6.0% in Sweden and 4.5% in Norway.

M&A Activity

The reported sales for Kesko’s continuing operations include the acquisitions and divestments completed in 2019 and 2020, including the acquisitions of Sørbø Trelast AS, Fresks Group and Mark & Infra i Sverige AB in the Building and Technical Trade division, the acquisition of the Volkswagen, Audi and SEAT businesses of Huittisten Laatuauto, LänsiAuto and Laakkonen in the car trade, and the divestment of Konekesko’s machinery trade operations in the Baltic Countries.

The group added that a 'strategic review' of operations in the Baltic Countries and Belarus, which it initiated in the first half of the year, is proceeding.

© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.

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