Kesko starts cooperation negotiations for the planned changes in its home and speciality goods trade, building and home improvement trade as well as the food trade

Helsinki, Finland, 2014-10-7— /EPR Retail News/ — Kesko seeks more competitive multi-channel home and speciality goods trade and aims to achieve synergies especially in the production of online services and the development of concepts. At the same time, a basis to improve profitability is formed, the organisational structure is evaluated, the combination of the building and home improvement trade division with the home and speciality goods trade division into the home improvement and speciality goods trade division is planned, and the non-food part of the K-citymarket chain, currently part of the home and speciality goods division, is planned to be integrated into Kesko Food operations as the grocery trade division starting from 1 January 2015.

In order for a more detailed discussion of the change plans, cooperation negotiations will be started in Kesko’s home and speciality goods trade companies and building and home improvement trade companies in Finland, as well as in Kesko Food Ltd, Kesko Corporation and K-Plus Oy. The planned changes would cause significant changes in the organisational structure and employees’ job descriptions, especially in functions that support sales and purchasing operations. A total of approximately 2,800 people will be included in the negotiations and the total reduction need in the companies is estimated at a maximum of 230 full-time equivalents. The impacts of the planned changes on personnel will be specified for the companies in more detail as the planning and the negotiations progress. Anttila, Kodin1 and K-citymarket department stores will not be included in the above cooperation negotiations.

Kesko has announced the matter previously in a stock exchange release on 24 September 2014.

A presentation of Kesko’s home and speciality goods division is available at http://www.kesko.fi/en/Company/Divisions/Home-and-speciality-goods-trade.

Cooperation negotiations for improving operational efficiency were also started in VV-Auto Group Oy and VV-Autotalot Oy on 23 September 2014. A total of approximately 700 people are included in the negotiations and the reduction need is estimated at a maximum of 49 full-time equivalents.

Further information:
Senior Vice President Matti Mettälä, Kesko Corporation, Human Resources and Stakeholder Relations, tel. +358 105 350 200.

Kesko Corporation

Merja Haverinen
Vice President, Group Communications

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