Kesko Pursues Growth in Northern Europe for Building and Technical Trade
Kesko's building and technical trade division has navigated a challenging market across its eight operating countries, maintaining good profitability. The company sees continued growth opportunities in the region.
Kesko Oyj's building and technical trade division is actively seeking growth in Northern European markets. The division, led by Division President Sami Kiiski, has operated for nearly a year amidst a challenging construction market affecting all eight of its operating countries.
Despite the difficult market conditions, the division has maintained a good level of profitability. Kesko has continued its investments even in a weakened market. Kiiski believes the division's position will strengthen as the market improves, indicating it could become Kesko's largest division in the long term.
The division operates in Finland, Sweden, Norway, Poland, Estonia, Latvia, Lithuania, and Denmark. Kesko has increasingly focused on B2B trade in recent years, which now accounts for over 80% of the division's sales, driven by the professionalization and increased regulation of construction and renovation work.
Kesko has expanded its international building and technical trade through acquisitions. Kiiski emphasizes that successful acquisitions require deep market understanding, respect for the acquired company's concepts and culture, and commitment from local management. The company applies country-specific strategies rather than imposing its own models.
In Finland, K-Rauta leads the building and home improvement sector with a 52% market share, and Onninen is the market leader in technical trade with 44%. Kesko highlights the role of its retailer model and store-specific approaches, alongside significant investment in digital services for its B2B customers.