Rautakesko: A drop of 1,5 per cent

In Finland, the volume of new housing construction declined by 5.3 per cent in comparison with the previous year (Statistics Finland), which also reduced Rautakesko's sales. Another factor reducing the net sales by approximately 5 per cent was the fact that some hardware stores remained outside chain operations, Rautakeso says.
The sales of yard and gardening products and building supplies, as well as houses and holiday houses progressed best. Repair construction currently accounts for as much as one third of the total volume.
At the end of 2002, 44 stores were included in the K-rauta chain and 102 stores in the Rautia chain. A new K-rauta store was opened in Helsinki. New Rautia stores were opened in Helsinki, Kaarina and Kaustinen. Particular attention was paid to developing the sales of yard and garden products and the sales to business customers in these store concepts.
The retail sales of the K-Alliance's hardware and building supplies stores operating in Finland increased by 2.7 per cent, those of the K-rauta stores by 3.8 per cent and those of the Rautia stores by 1.4 per cent. As a whole, the hardware and building supplies sector recorded a growth of 1.3 per cent, but this development was not uniform, the Finnish Hardware Association says.
The net sales of Rautakesko's foreign subsidiaries increased in 2002 by 25.0 per cent reaching a total of € 129.1 million. Two new K-rauta stores were opened in Sweden and one in both Latvia and Estonia. In Sweden, the net sales of K-rauta AB totalled € 67.7 million, representing a growth of 39.4 per cent. Rautakesko's foreign subsidiaries accounted for over 17 per cent of its net sales. In October-December, their net sales were € 32.3 million, a growth of 21.7 per cent.