Rautakesko revamps Russian portfolio

Over the next two to four years Rautakesko Russia is planning to close five stores in St Petersburg which were acquired from Stroymaster in 2005 and are on leasehold property. These stores are to be replaced by bigger DIY outlets, which have still to be built, in order to standardize the format by degrees. Efforts are currently being concentrated on the search for building plots, some of which are intended to provide space for Keskofood supermarkets in addition to the DIY stores. The plan is to open two K-Citymarkets by 2013, according to Mikko Nissinen, director for Russia at Rautakesko Ltd, during the presentation of the company’s tenth store under the K-rauta banner in St Petersburg and 13th in Russia as a whole (as reported in DIYglobal). Nissinen also explained that ten new DIY stores will be open to customers in Russia by 2015. His company is investing € 300 mio in this programme, with the target of increasing sales to € 800 mio.