KESKO CORPORATION PRESS RELEASE 26.03.2007 AT 16.30
Speaking at Kesko's Annual General Meeting today, 26 March 2007, Heikki Takamäki, Chairman of the Board, argued strongly for the dismantling of unfounded regulation of the trading sector. Customers' freedom of choice is now limited by inappropriate opening hour restrictions, for example. Takamäki stressed that the purpose of stores is to serve customers, and that there would be no obligation to keep them open, even if the law allowed it. The Government should also take quick action to lower the value added tax on food.
Kesko Chairman Heikki Takamäki emphasised that the efficiency of trade is important not only for business, but for the whole of Finland. Prices could come down if resources such as store premises could be used more efficiently. Services should be given more freedom to develop. The service sector is becoming much more significant as an employer and the contribution of services to the Finnish economy is still small. Trading is more regulated in Finland than it is on average in other countries, such as Sweden and Norway.
"Regulation reduces competition, slows down the introduction of new operating concepts and affects the productivity of the sector. Many official decisions are aimed at restricting the functioning of the market - such as the regulations related to opening hours, the trading of alcohol and pharmaceuticals and the zoning of land for food stores. The establishment of a new store may take over 10 years, even though the locals may want a wider range of goods and better shopping services," said Takamäki.
"All-in-all, Finland is a favourable country for entrepreneurs, however. The enterprise of the K-retailers constitutes the K-Group's chief competitive advantage, offering consumers a genuine alternative and the freedom to choose. The professionally skilled K-retailers and their staff are able to adapt the store to local conditions, in just the way that serves their own customers the best."
Matti Halmesmäki, Kesko's President and CEO, pointed out that Kesko's goal remains strong growth in Finland and in international markets, especially Russia. Halmesmäki noted that responsible operating methods are a major competitive advantage for Kesko.
"Store services make up part of the wellbeing of customers. The K-stores are located near customers; for example, 45% of Finns live less than one kilometre from a K-food store. Our more than 2,000 stores are visited by over one million customers every day. As a responsible company we ensure that the products sold in the K stores are well-researched and safe. The staff's wellbeing, expertise and motivation are also key factors in Kesko's success."
Responsible action is promoted in Kesko by many practical measures, including efficient logistics and the sensible use of energy. According to Halmesmäki, responsibility pays off, because international studies show that responsibly operating companies fare better than their competitors in the long term.
The Annual General Meeting releases and presentations can be downloaded at www.kesko.fi.
For further information, please contact Paavo Moilanen, Senior Vice President, Corporate Communications, Kesko Corporation, tel. +358 0 1053 22764.
Kesko (www.kesko.fi) is a retail specialist whose stores offer quality to the daily lives of consumers through valued products and services at competitive prices. Kesko operates in the Nordic and Baltic countries and Russia.