Kesko Consolidates Swedish Building Trade Under K-Bygg Chain
Kesko Oyj is consolidating its building and home improvement operations in Sweden under the K-Bygg chain. The move aims to enhance efficiency and focus on serving building professionals, with completion expected by the end of 2024.
Kesko Oyj announced a strategic consolidation of its building and home improvement trade operations in Sweden, bringing them all under the K-Bygg chain. This initiative aims to streamline operations and strengthen the company's focus on serving building professionals, while continuing to cater to consumers.
The company plans to either convert existing K-Rauta stores in Sweden into K-Bygg outlets or close them. The K-Bygg chain currently operates 51 stores nationwide. This rebranding and integration process is scheduled to be fully completed by the end of 2024, unifying Kesko's retail presence in this sector under one brand.
Kesko's technical wholesale operations in Sweden will continue unaffected under the Onninen brand. Jorma Rauhala, President of Kesko's building and technical trade division, stated that the company aims to grow the K-Bygg chain through organic expansion and acquisitions. He emphasized that increased investment in serving professionals is a strategic choice for future success and profitability.
In 2022, K-Bygg's sales in Sweden reached €382 million, with 79% coming from business-to-business (B2B) clients. K-Rauta generated €190 million in sales, with B2B accounting for 38%. The significant B2B share in K-Bygg supports the strategic shift towards professional customers.