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Published
Mar 13, 2017
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Kesko links with Oriola-KD for beauty and well-being chain

Published
Mar 13, 2017

Retail giant Kesko is linking up with Oriola-KD to set up a chain of beauty, health and well-being stores across its domestic market, Finland.


Kesko and Oriola-KD are powerful brands in Scandinavia and hope to grow bigger through their new JV



The companies said they are going to start building “a completely new kind of store chain” in the country, specialising in overall well-being under a new joint venture.

The first phase objective is to build a chain of 100 stores, as well as an online store, with an eventual goal of moving into pharmaceuticals, although they said this latter aim would require legislative changes.
Kesko runs a diversified business with its biggest retail ops being in the grocery sector. And Oriola-KD is a retail pharmacy specialist operating both in Sweden and Finland. It owns Kronans Apotek, which is the third largest pharmacy chain in the Swedish market.

Each of the two partners will own 50% of the business with €25m being invested during the first phase. The first of the 100 stores are planned to open by this autumn with around 15 of them due to be operational by year-end.

Few details were available beyond the basics but the news is certainly interesting. It comes at a time when the beauty and pharmaceutical sectors are increasingly converging both in terms of ingredients and product claims and in the look and feel of packaging and the approach to marketing. And with well-being seen as an integral feature of many product launches from skincare to fragrance and even colour cosmetics, it looks like an optimum moment to launch the new venture.

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