Kesko: Decline in grocery market share slowed in 2024
K Group's share of the Finnish grocery market declined by 0.6 percentage points in 2024, a slower decrease than in the previous year. The company is focusing on store network updates and price competitiveness.
Helsinki – K Group's share of the Finnish grocery market was 33.7% in 2024, a decrease of 0.6 percentage points compared to 34.3% in 2023. This decline was less pronounced than the 0.9 percentage point drop seen in 2023. In the online grocery sector, K Group's market share exceeded 40%.
Reversing the market share trend is a key objective for Kesko's grocery trade division. The company's strategy focuses on three areas: updating and expanding the store network, improving price competitiveness, and enhancing store quality. Competitors have made significant investments in opening new, larger stores, which has impacted K Group's market share. Kesko plans to open several new hypermarket-sized stores in the coming years.
The total number of K Group grocery stores decreased by 80 in 2024. This reduction was partly due to Kesko's withdrawal from grocery operations at Neste K service stations, which negatively impacted the overall market share by 0.2 percentage points.
In January, the company launched an extensive price program, lowering prices on over 1,200 everyday staples. Measures related to store network changes and pricing are expected to influence sales over the longer term. The grocery trade division aims for an operating margin clearly above 6% during the current strategy period.