Kesko: to discontinue operating «Neste K» service stations

Kesko / FI. (kkc) Kesko Corporation will discontinue operating the «Neste K» service stations, as the role of grocery trade at the stations has diminished. Kesko currently handles the grocery trade operations and additional services at the «Neste K» stations. The aim is for the station services to continue as Neste services. The changes will not impact the rest of Neste’s network of stations or services offered there.

Focus on core businesses has been a central part of Kesko’s growth strategy in recent years, and withdrawing from operating service stations is a natural continuation for this.

For Kesko, the «Neste K» service stations are part of the grocery trade business. Grocery sales at the stations have decreased significantly after legislation on store opening hours in Finland changed in 2016, and operations at the stations are now more focused on cafe and restaurant services. As a result, the business of the «Neste K» chain now differs significantly from that of other Kesko grocery store chains, resulting in reduced synergies. The net sales for Kesko’s grocery trade division totalled EUR 6,125 million in 2022, of which «Neste K» service stations accounted for EUR 56 million (0.9 percent).

Kesko plans to withdraw from operating 64 «Neste K» service stations by the end of 2024. The stations will continue as a service offered by Neste.

The «Neste K» retailers will be offered the chance to continue in the Neste chain. The retailers will also be asked whether they would be interested in becoming retailers for K Group grocery stores.

According to Neste, the planned changes will not impact the rest of its network of service stations. The Neste service stations will continue to be part of K Group’s K-Plussa customer loyalty programme.