Since its inception in 1904, the S Group has grown to become a dominant force in Finland’s grocery store industry. The current CEO, Hannu Krook, reflects on the company’s rich history as he sits at an old table that once belonged to the Big Leader. Today, SOK owns half of Finland’s kingdom, with Sokos Hotels and ABC stores being some of its best-known brands.
Finland was still part of the Russian Empire when SOK was founded. At that time, most people lived in the countryside and made their living from farming. Cooperative stores sold basic goods like salt, sugar, flour, and coffee. Nowadays, S Group stores offer a wide variety of products, with coffee remaining a top seller.
The cooperative movement in Finland began in the early 1900s out of necessity for organized action. SOK was tasked with managing joint purchases and advice for cooperatives. Over time, the company expanded its operations and faced challenges such as economic crises and changes in consumer habits.
In the 1990s, S Group underwent significant changes that set the stage for its current success. The company focused on consolidating its regional stores and increasing purchase volumes to remain competitive in the market. Today, S Group’s market share in Finland is significant but CEO Hannu Krook emphasizes that prices remain reasonable compared to other EU countries.
Krook believes in the future of online shopping and has prioritized investments in developing S Group’s online platform. While online sales currently make up a small percentage of total revenue, Krook sees potential for growth as technology advances and consumers become more comfortable with digital shopping. Despite facing challenges along the way, Krook remains optimistic about the company’s future in this modern digital age.
SOK started as a cooperative store selling basic goods like salt
