Kesko's grocery trade division is a key operator in the Finnish grocery trade. The division's main functions include the centralised purchasing of products, selection management, logistics, and the development of chain concepts and the store network.
The division's grocery store chains are K-Market, K-Supermarket and K-Citymarket. In 2021, the chains comprised 1,200 grocery stores, run by some 1,000 independent K-retailers. Over 500 of the stores also offered online grocery sales services. Approximately 50% of Finns live less than a kilometre away from a K-food store.
Formerly Kesko called these four size-grades of their shops K (small), KK (middle-sized), KKK (large), and KKKK (largest), and the chain names were K Extra, K Lähikauppa (= "local shop"), KK Market, KKK Supermarket and KKKK Citymarket; but this naming system has been changed.
Kesko's grocery private brands include Pirkka, Pirkka Parhaat and K-menu.
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The main competitors are Prisma, S-market and Alepa/Sale of S Group, M chain stores, and Lidl.
Kesko company Kespro is the leading wholesaler in the Finnish HoReCa business.
Kesko also used to have small convenience stores, cafes and restaurants which operated at staffed service stations of Neste oil corporation. These service station facilities were branded as Neste K. The convenience stores were virtually always found in Neste K station, while whether the station has a cafe or restaurant depended on the size and location of the station. Cafes were branded as Koon Kahvila and restaurants as Koon Keittiö. Kesko discontinued the Neste K stores in 2024 and they are currently operated solely by Neste.
K-citymarket's home and speciality goods trade is part of the grocery trade division.
Building and technical trade
Kesko's building and technical trade division operates in Finland, Sweden, Norway, Estonia, Latvia, Lithuania and Poland. Its chains are Onninen, which serves technical professionals, and K-Rauta, Byggmakker and K-Bygg, which serve both professional builders and consumers.
The division's main functions include the centralised development of chain selections, centralised purchasing and logistics, and the development of chain concepts and the store network.
K-Rauta and Intersport stores in Finland are operated by retailer entrepreneurs. The international business model combines the category management, purchasing, logistics, information system control and network improvements of the company's chains which operate in different countries.
Car trade
The car trade segment consists of K-Auto (formerly operated as VV-Auto).
K-Auto imports and markets Volkswagen, Audi, Porsche, Cupra, SEAT and Bentley passenger cars and Volkswagen commercial vehicles in Finland. Kesko’s own outlets and independent dealers sell new and used cars and offer servicing and aftersales services at 71 locations across Finland. The division's K-Lataus network offers electric vehicle charging facilities at K Group store locations around Finland.
K-Auto represents the leading brands in their market area and are responsible for the sales and after-sales services of these brands either through their own or dealer network. The dealer network is complemented by a network of contract service centres.
The division also comprises leisure trade and the chains Intersport and Budget Sport.
Market share and competitors
In 2014, Kesko's market share in food trade in Finland was 33.1% (Nielsen). At that point, Kesko's competitors in food trade in 2014 were S Group (45.7%), Lidl (7.6%), Suomen Lähikauppa (6.8%), and M chain stores (Nielsen). Kesko later acquired Suomen Lähikauppa in 2016 and the deal increased Kesko's share of the market to about estimated 40%.
In 2019 Nielsen report, Kesko's market share in grocery trade was estimated to be 36.5%.
