K Group grocery division gains market share while maintaining profitability
K Group's grocery division saw its market share increase by 0.5 percentage points in the first quarter of 2026 year-on-year. The division maintained good profitability with an operating margin of 6.5%.
Helsinki – K Group's grocery stores increased their market share by 0.5 percentage points in the first quarter of 2026 compared to the previous year, the company announced. The positive trend in market share began in the summer of 2025 and has grown monthly since.
The Finnish grocery market as a whole grew by 2.9% in the first quarter, while K Group's grocery sales increased by 4.4%. This growth marks a significant turn after a period of negative development starting in 2022.
According to the company, market share growth is supported by strategic investments in pricing, quality, and store network development. In January 2025, K Group launched an extensive price program, investing €50 million with K-retailers to cut prices on over 1,200 popular items. These efforts have increased customer flows and average purchase size.
Quality improvements have focused on assortment, availability, customer service, and digital services. Significant investments, estimated at €200-250 million annually, are also being made in developing the store network. In 2026, K Group plans to open 25 new stores and remodel over 60.
Despite these initiatives, the grocery division's operating margin stood at 6.5% (rolling 12 months) in the first quarter, exceeding the company's target of "clearly above 6%".