News | Kesko withdraws

Back

12 of 14 K-rauta stores in Russia are sold to Leroy Merlin

Currently, Kesko operates 14 home improvement stores under the K-rauta brand in the Moscow and St. Petersburg areas.

Currently, Kesko operates 14 home improvement stores under the K-rauta brand in the Moscow and St. Petersburg areas.

Kesko sells its Russian DIY stores to Leroy Merlin. After the Finnish group reported sales negotiations last week, it has now announced their implementation. It is closing twelve of its 14 K-rauta stores in Moscow and St. Petersburg in spring and will be handing them over to the Russian market leader by the middle of the year for RUB 12 bn (around EUR 169 mio). Two locations in the Moscow area will be completely closed. In total 1 800 employers will be affected. Kesko states the net sales of the stores to be EUR 184 mio for 2017.

The Finns, however, will remain in the country with their activities in the grocery trade, in the building materials and technical trade as well as in the car trade. Mikko Helander, chairman of the board of directors, gives the reasons for the withdrawal from the DIY store business as being because investments in Russia did not achieved the expected results. An expansion beyond the regions of St. Petersburg and Moscow would have required significantly more investment.

Leroy Merlin belongs to the French Groupe Adeo. With currently 75 locations, the chain is the number one on the Russian home improvement market and employs 23 000 workers there.

|20 February 2018


More about the company
SEND
 PRINT 

Post a comment

* Please complete the areas marked in red correctly and in full!.



(will not be published)

* obligatory fields


Latest news

Clas Ohlson grew by three per cent in fiscal 2017/2018

The Swedish retail chain Clas Ohlson increased its sales in fiscal 2017/2018 (ended 30 April 2018) by 3 per cent to SEK 8.211 bn (EUR 800.1 mio). In View news...

New special exhibition areas for garden furniture and IVG Power Place Green

For the first time at the upcoming Spoga+Gafa there will be an internationally curated trend show for the garden furniture segment with several View news...

The Tag des Gartens has been axed

The Tag des Gartens will not take place this year. After three events, Koelnmesse is dumping this consumer garden fair which usually took place on View news...

The French garden market grew again in 2017

After a bad previous year, the garden market grew again in France in 2017. Total sales increased by 1.8 per cent after they still sank by 0.2 per View news...

Actual figures

Statistics Home Improvement Europe


Statistics Home Improvement
This brochure provides a competent overview of the situation in the Home Improvement sector in 31 European countries.

Order now!

5th Global DIY Summit 2017

STORCH-CIRET Group

Storch-Ciret Group

Berlin was the center of the DIY universe

The 5th Global DIY Summit in Berlin was a first class networking event for the international home improvement industry. Here are the portraits of some of the most important companies that exhibited at the International Congress Exhibition.

Gallery