Kesko - Retail sector expert

It’s been quiet here since the results. Here are our thoughts on Q4 and the 2026 guidance. The outlook seems relatively positive, especially looking toward 2027. For this reason, we maintained a positive view, even though the valuation multiples for the current year are quite tight.

Highlights:

  • The net impact of the grocery trade (PT-kauppa) store network renewal should be neutral in 2026 and positive in 2027. In 2025, the network still had a negative impact on market shares. In other words, the price investment program yielded significant results, especially in Citymarkets.
  • The price investment program continues, and retailers are committed to it, in typical Kesko fashion.
  • There are no clear signs of improvement in the building and technical trade (RT-kauppa) market yet, but internal price competition within the industry seems to have subsided. Competitors have apparently realized that the business must also generate a profit in the long run, which has put pressure on price increases. Kesko generates the majority of the market’s profit in technical wholesale in Finland.
  • In the car trade, the market is expected to remain weak, but the scrapping incentive may provide some support for the development of the new car market. K-Auto’s growth is therefore based on the company’s own strong performance.
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