Kesko's first food store opened in St. Petersburg

2012-12-05 11:09:56 -

KESKO FOOD LTD PRESS RELEASE 05.12.2012 AT 12.00 1(2)

Kesko Food opened its first food store in St. Petersburg, Russia, today. Kesko
Food aims to open four large food stores in the St. Petersburg region by the end
of 2013 and continue expanding in the St. Petersburg region and later also in
the Moscow region. The aim is to achieve net sales of €500 million and a
positive result by the year 2017. Kesko has also 14 K-rauta stores and 31
Intersport stores in Russia.

According to Kesko Food's President Terho Kalliokoski, the initiation of
business operations in Russia has proceeded as planned. The brand in food
retailing is K-Pyoka (K-Ruoka), which indicates high-quality food and wide
selections. "Many people in St. Petersburg are familiar with the K-symbol, which
stands for Finnish origins and quality. In connection with the opening, we are
launching the K-plus loyalty card, which will also provide customers with
benefits from K-rauta stores and Intersport stores in Russia."

"The store focuses on high-quality fruit and vegetables, bread and extensive
service counters for meat, fish and prepared foods, plus an in-store scratch
bakery. Daily shopping is also easier thanks to a wide range of beauty care
items, children's clothing and toys," says Oleg Buyalski, General Director of
Kesko Food Rus.

General Director Oleg Buyalski joined Kesko in 2011 after having held various
managerial positions in two of the largest hypermarket chains in Russia - Lenta
and the French-owned Auchan - for over 10 years and having been employed before
by international suppliers operating in Russia. Other members of the Management
Board also have wide experience of working for large retail companies operating
in Russia, such as O'Key, IKEA and Auchan.

The first K-Ruoka is located in Primorski, a fast-growing district of over
400,000 inhabitants, at Planernaya Ulitsa 17. The store has good connections and
is close to built-up areas. According to Buyalski, store location is of great
importance in Russia, too. The store with sales area of about 5,000 m2 operates
in a property owned by Kesko, where customers are also served by a cafe, a
pharmacy (Yliopiston Apteekki), a florist and four other firms. There is a car
park with more than 400 spaces on the site.

Kesko is gaining synergy benefits when doing business through several chains in
Russia. According to Kari Heiskanen, Kesko's Vice President responsible for
store site operations in Russia and Kesko Food's Country Director for Russia,
the fact that Kesko has several store chains in Russia allows resources to be
centralised and efficiency of operations for example when acquiring and building
store sites.

The store's web pages are available at Photos can be downloaded

Further information:
President Terho Kalliokoski, Kesko Food Ltd, tel. +358 10 53 22204

Kesko ( is a highly valued listed trading sector company. It
manages retail store chains that are valued by customers and efficiently
produces services for retail store chains' purchasing, logistics, network
development and data management. Kesko's operations include the food, home and
speciality goods, building and home improvement, and car and machine trades. Its
division parent companies and chains act in close cooperation with retailer
entrepreneurs and other partners. Kesko has about 2,000 stores engaged in chain
operations in Finland, Sweden, Norway, Estonia, Latvia, Lithuania, Russia and
Belarus. Kesko and K-retailers form the K-Group, whose retail sales totalled €12
billion (VAT 0%) in 2011. The K-Group employs around 45,000 people.

Besides Finland, Kesko also seeks growth in the Russian market, in particular,
which is growing faster than the Nordic and Baltic markets. In addition to the
first K-Ruoka store, Kesko has 14 K-rauta stores and 31 Intersport stores in
Russia. Konekesko markets construction, materials handling and environmental
machinery in St. Petersburg through its own dealer network.

This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.

Source: Kesko Oyj via Thomson Reuters ONE

Press Information:

Contact Person:

email: e-mail

Disclaimer: © 2014 Thomson Reuters. The press releases or report contained herein is protected by copyright and other applicable laws, treaties and conventions. Information contained in the releases is furnished by Thomson Reuters's, who warrant that they are solely responsible for the content, accuracy and originality of the information contained therein. All reproduction, other than for an individual user's personal reference, is prohibited without prior written permission.