FINNISH GROCERY TRADE 2008–2009 Päivittäis Päivittäis Tavara Tavara KAUPPA KAUPPA
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PÄIVITTÄIS PÄIVITTÄIS TAVARA TAVARA KAUPPA KAUPPA FINNISH GROCERY TRADE 2008–2009 PÄIVITTÄIS PÄIVITTÄIS TAVARA TAVARA KAUPPA KAUPPA PÄIVITTÄIS TAVARA KAUPPA List of Contents Responsible trade takes consumers into account ...........................................................3 Deregulation Improves Service ....................................................................................................4 Grocery trade and society .................................................................................................................7 Grocery trade and groceries ...........................................................................................................9 Grocery trade groups ........................................................................................................................11 Key indicators for 2007 .................................................................................................................... 17 Structural change in the grocery trade ...............................................................................18 • Grocery store sales and change in volume and value in 1993–2007 ................................................................................................................................19 • Number of grocery stores by type and group in 2007 ...................................19 • Sales of groceries by type of store in 2000–2007 ...............................................19 • Sales of groceries by chain in 2007 ................................................................................20 Store types and definitions ..........................................................................................................21 Village grocery stores by province ...........................................................................................23 Kiosks ..........................................................................................................................................................23 Department stores .............................................................................................................................25 Clothing .....................................................................................................................................................26 Private labels ...........................................................................................................................................27 International purchasing organisations .............................................................................27 Responsible operation is a team effort ...............................................................................29 Growth in the HoReCa sector .....................................................................................................31 Higher prices and supply chain efficiency ........................................................................32 Sales trends in different product groups ...........................................................................33 Division of responsibilities in the Finnish Grocery Trade Association ......... 34 Member companies and their contact information ..................................................35 Text: Finnish Grocery Trade Association FGTA and Kehittyvä Kauppa magazine Photos: Jaanis Kerkis, Pentti Nisonen (p. 28), FGTA and its member companies (photos of the authors) Graphic design: Tiina Aaltonen/ gra&grappo Printers: Painotalo Miktor, Helsinki 2008 ISSN 1456-3061 PÄIVITTÄIS PÄIVITTÄIS TAVARA TAVARA KAUPPA KAUPPA PÄIVITTÄIS TAVARA KAUPPA Responsible trade takes consumers into account rade is a consumer-focused sector that keeps track the ongoing changes occurring in con- sumer lifestyle and demand. Taking consumers into account means supporting their choices by Tcreating new selections and expanding on existing ones, and by providing information and improved service. We also follow societal debates and the evolution of collec- tive values. Among these values, ethical integrity and responsibil- ity have become increasingly important to consumers. In developing responsible operations, co-operation pays off. Joint efforts pursued by the whole sector are more -ef ficient than separate measures taken by each individual trade group. Joint practices are also clearer from a con- sumer’s perspective. The development of the grocery store self-control sys- tem for the sale of age-restricted products is a good ex- ample of joint responsibility. It brings forth standardized store procedures for confirming a shopper’s age and ex- ercising self-control with age-restricted products. Check- number of fruitful business locations directly to compa- out personnel receive uniform proficiency training in age nies in the trade sector. limit issues. Life is busier than it used to Consumers are increasingly interested in knowing be, and this hectic pace of life can To make about the environmental impacts and ethicality of their also be felt inside stores them- purchases. To make active choices, consumers need infor- selves: people shop increasingly active choices, mation on issues such as production methods and envi- in the evenings and on Saturday consumers ronmental impacts. The trade sector provides consumers afternoons. Indeed, over 50% of with these options and information. With improved pack- respondents in recent consumer need information. age markings and traceability of foodstuffs, more infor- questionnaires have said that they mation than ever is available. would wish for the establishment The trade sector contributes to the joint climate effort of deregulated Sunday opening hours. Parents of young by developing its logistics. Its transportation processes children are particularly favourable to free opening hours, are efficient both from a logistical and an environmen- which would help make their timetables more flexible. tal point of view. Selections widen so that consumers can The rigid regulation of retail trade creates an obsta- do all of their shopping in one place. Fast, easy shopping cle for utilizing innovations, meeting consumers’ wish- makes life run more smoothly, providing both the retailer es and increasing the efficiency of the trade sector. and the customer with a sense of efficiency. This is why the trade sector hopes for the reduction of The main competitive edge of a store is its location. strict regulations – to better serve the interests of the The strongest aspect of the grocery trade is its efficient consumers. service network, in which stores of varying sizes and spe- cialties fulfill their designated roles. The ageing of the Terho Kalliokoski population makes it even more important to maintain Terho Kalliokoski, President of Kesko Food Ltd, is the a service network. Municipalities should enable the de- Chairman of the Finnish Grocery Trade Association. velopment of a service network and allocate a sufficient Finnish Grocery Trade 2008–2009 3 PÄIVITTÄIS PÄIVITTÄIS TAVARA TAVARA KAUPPA KAUPPA PÄIVITTÄIS TAVARA KAUPPADeregulation Improves Service he Ministry of Employment and make use of the current Sunday opening the Economy emphasizes the hours. Sundays account for 4% of all gro- importance of innovations, cery purchases. Moreover, the majority of which ensure productivity and respondents in various opinion polls find economic growth in the service sector. As Sunday opening hours to be necessary. agriculture and traditional industries oc- Extended opening hours improve cus- cupy a diminishing segment of the na- tomer service, trade productivity, com- tional economy, an improved productivi- petitiveness of both domestic production ty within trade and other services and supply chains, and employment. Ex- becomes more crucial. In order for the tended opening hours also increase the Ministry’s innovation policy to material- return on capital tied up in properties, as ise in the service sector, trade has to be well as their energy efficiency. Year-round able to operate in a more liberal manner Sunday opening hours would increase and with fewer regulations. the commercial appeal of urban centres, The needs of consumers, the environ- making them more competitive vis-à-vis ment and society at large are changing at the shopping centres planned outside Placing rigid an increasing rate, requiring trade servic- population hubs. According to studies es to continuously update. Enforcing rig- regulations on the performed, a change in regulations to al- id regulations in the trade sector makes trade sector makes it low all stores to remain open on Sun- it difficult to develop customer service in days wouldn’t hurt small neighbourhood a way that meets consumers’ needs and difficult to develop stores, since different store types all play wishes. customer service in a particular role in the trade service net- Deregulation would promote an in- a way that meets work. crease in productivity and competitive- ness in the entire supply chain, such as consumers’ needs Self-care medicines to that of the food industry, from prima- and wishes. grocery stores ry production to the processing stages The sale of self-care medicines that don’t and further to grocery stores. Improved require a prescription should be liberated, productivity would ease the pressure to increase prices, and these products should be available at grocery stores, thereby containing inflation. similarly to nicotine-replacement products. This would improve the service provided to consumers, safeguard- Year-round Sunday opening