K-market in Padasjoki, Finland, to close due to equipment failure and declining profitability

The K-market in Padasjoki, Finland, will close its doors next week due to the property and refrigeration equipment reaching the end of their lifespan. Kesko, the company responsible for store locations, deems it unprofitable to continue operating a small grocery store in a municipality with fewer than 3,000 residents. Padasjoki is not the only small town facing such closures.

In recent years, an average of 20 new stores have opened while about 30 have closed annually, indicating a steady decline in the number of grocery stores. However, often when a store closes, a new and larger establishment opens in its place, according to Nuutti Rantatupa of Kesko.

Ari Aaltoluoto, a carpet seller who has frequented Padasjoki since the 1990s, noted that while the S-Market is popular, there have been loyal customers of K-store over the years. He expressed concern over reduced competition in the area. Rantatupa stated that the K-market needed renovation, but the potential customer base did not justify the investment. Meanwhile, S-Market will continue operating in Padasjoki.

The article highlights a significant reduction in the number of grocery stores and a corresponding increase in their total area throughout Finland in the 21st century. The grocery market is becoming increasingly concentrated in the hands of major players like Kesko, S-Group, and Lidl.

The closure of small grocery stores raises concerns regarding competition and pricing in local markets. According to Tuula Loikkanen, CEO of the Finnish Grocery Trade Association, while the summer months increase sales in vacation areas, the long-term sustainability of these small stores remains dependent on local and visiting customer support.