Kesko Food manages the K-food store chains and is responsible for purchasing, marketing and logistics operations and store sites. The management of the K-food stores is concentrated from six to three units, which are K-citymarket (51 stores), K-supermarket (152 stores) and K-market (all other K-food stores incl. K-extra, K-pikkolo and Cassa stores, 850 in all). In addition, the K-food stores' service and price competitiveness will be markedly improved as a result of Kesko Food's intensified control of the operations chain from customers to suppliers.
Logistical improvements will mainly focus on enhancing the operational base of logistics control as a whole. Plans have also been prepared to transfer Kesko Food's warehouse production to Kesped Ltd, responsible for Kesko Corporation's transport and terminal operations. Kesped will become a Kesko Food subsidiary and its name will be changed to Keslog Oy. This arrangement will take effect from the beginning of next year and it will not have any immediate effects on personnel.
The reforms are aimed at outperforming the competition in terms of sales development. Within the next few years, over 300 million euros are planned to be invested in store sites. The enhancement of Kesko Food's operating efficiency started in the spring 2005 generates some 20 million euros in savings compared to the earlier level. Capital spending will be enhanced by divesting store sites while making investments in the retail store network and improving its sales performance. Store site capital is planned to remain at the present level.
There are some 900 K-food retailers and the number of persons employed by the K-food stores totals about 14,500.
Kesko Food's new organisation
Chain management is the responsibility of Kesko Food's Executive Vice President Harri Sivula (K-citymarket), Vice President Minna Kurunsaari (K-supermarket) and Vice President Mika Rautiainen (K-market). Vice President Ari Akseli is responsible for commerce. Human resources, concept development, marketing support and K-Plus Oy are the responsibilities of Vice President Niila Rajala. Vice President Kari Heiskanen is responsible for store sites and retailer programme. Vice President Petteri Niemi, who has acted as Director of the Commercial Division at Tuko Logistics Oy, is responsible for delivery chain management, information management and finance. Keslog Oy's Managing Director is Mika Salmijärvi.
Juha Ahtinen has been appointed Citymarket Oy's Managing Director reporting to Harri Sivula. Director Antti Palomäki, responsible for delivery chain management, and Financial Director Harri Koukkunen report to Petteri Niemi. Vice President Ari Virnes is responsible for the K-food stores' joint operations, such as Pirkka and the other own brands. Virnes reports to Ari Akseli, like Kespro Ltd's Managing Director Minna Laakkonen, who now also adopts responsibility for HoReCa product purchases.
Jukka Sipilä, currently Vice President for Retail Services and Accounting, has been appointed Vice President for Rautakesko Ltd's Finance, Information and Risk Management. K-citymarket's current Vice President Kari Kivikoski has been appointed Konekesko Ltd's President, and K-market's current Vice President Eija Jantunen K-instituutti's Managing Director.
An information meeting about these matters takes places today at 13.00 hrs in the Kesko Auditorium, at Ankkurikatu 5, 4th floor. Kesko's President and CEO Matti Halmesmäki, Kesko Food Ltd's President Terho Kalliokoski and Executive Vice President Harri Sivula attend the meeting.
Further information:
President Terho Kalliokoski, Kesko Food Ltd, tel. +358 1053 22204
Executive Vice President Harri Sivula, Kesko Food Ltd, tel. +358 1053 22213
President Terho Kalliokoski, Kesko Food Ltd, tel. +358 1053 22204
Executive Vice President Harri Sivula, Kesko Food Ltd, tel. +358 1053 22213
Kesko Corporation
Anne Leppälä-Nilsson
General Counsel
General Counsel
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