In the latest round of price activity in Finland, Kesko has revealed that it is reducing the prices of 2,000 products, due to falling raw material prices and decreasing costs.
Kesko: ‘price is not the only deciding factor of a food store’
Commenting on the development, Jorma Rauhala, Senior Vice President for Kesko’s grocery trade said, ‘We ought to remember that price is not the only deciding factor of a food store - food is a far too valuable issue to be discussed only in that respect. K-food stores are the quality leaders in the Finnish grocery trade. We provide Finnish consumers with the best food stores, at which excellent service, the most diversified selections and a comprehensive selection of local Finnish products meet. The sales of products from local producers at K-stores, for example, have grown on several consecutive years and last year, their sales increased by 15 per cent'.
Our view: price cuts get more intense in 2016
In 2015, price was also a hot topic in the market, with S Group lowering prices on 400 of its most popular products in its hypermarkets, following a move by Kesko which reduced prices in November 2014. The latest round of price cut activity also demonstrates the growing influence of Lidl, which counts Finland as one of its fastest growing markets.
Want to know more about Lidl's fastest growing markets? Explore our insight presentation, 'Lidl - five strategic initiatives' here.