News | Kesko withdraws


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

Post a comment

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

(will not be published)

* obligatory fields

Latest news

Plus 8.2 per cent in the second quarter saves the first half of the year for the industry

The DIY store trade in Germany made total gross sales of EUR 9.76 bn in the first half of 2018, thus gaining an increase in sales of 1.7 per cent View news...

Bauhof in Estonia sold to Lithuanian group Vilniaus Prekyba

The Estonian DIY store and building materials chain Bauhof has been sold. The Lithuanian trade company Vilniaus Prekyba acquired 100 per cent of the View news...

Würth targeting massive expansion in Italy

The German retailer Würth is targeting massive expansion in Italy. The company, which specialises in fastenings, aims to increase its number of View news...

Homebase reported to be closing up to 80 stores

Up to 80 stores belonging to British DIY chain Homebase are expected to close next week, according to reports on Sky News and in The Guardian's 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!

6th Global DIY Summit 2018

Ledvance, future of lighting


LEDVANCE: Impulses for the future of lighting

More than 1 100 participants came to the 6th Global DIY Summit in Barcelona. Here are the portraits of some of the most important companies that exhibited at the International Congress Exhibition.