Breadcrumb
History of the PKO
1900–1930
In 1901, Finland enacted the Cooperatives Act, which laid the foundation for the establishment and operation of cooperatives. In 1904, the Central Finnish Cooperative Society (SOK) was established, and Yhteishyvä magazine was launched in 1905.n North Karelia, cooperatives were primarily established by members of the working class and farmers. The operations of the cooperatives started out as small and modest stores. At the beginning of the century, several cooperatives were operating in the North Karelia region, some of which survived only for a short time. The main reason for unprofitability was selling on credit, which led to credit losses.1920s
In 1920 and 1921, PKO’s sales developed favourably, but declined in 1922 and continued to fall in 1923. The good sales development had been largely caused by price increases. As inflation persisted and sales declined, the business ran into difficulties. At its meeting in March 1923, the Supervisory Board was forced to close several stores.There are several reasons behind the difficulties PKO faced during its early years of operation. Its operations had expanded too rapidly, its inventories were obsolete, and the control of sales on credit was inadequate. In addition, the aftermath of the Civil War left the country in a state of instability. The value of money declined, and prices fluctuated sharply. It was only in the mid-1920s, as the country began to recover from these economic difficulties, that the value of money stabilised and, consequently, the national economy began to recover.As a result of the improved financial position in 1927, the establishment of new stores and the development of operations gained momentum again. By the time PKO celebrated its 10th anniversary, it operated 14 stores, sales were on the rise, and the surplus had increased to one per cent of total sales. The cooperative had 583 members.1930–1960
The 1930s, and especially the early part of the decade, were marked by a global economic depression. As a result of declining sales and revenues, the depression also hit PKO. Four stores were closed down between 1930 and 1931.However, the depression also had a beneficial impact on operations, as sales on credit declined. As a result, the cooperative's receivables decreased, and a healthier foundation was laid for financing arrangements. The savings association was founded in 1937.The years 1938–1939 marked a turning point for the PKO. At that point, the cooperative moved from years of hardship into a period of improving results and growing success. Between 1933 and 1938, PKO’s sales doubled, reaching nearly 17 million Finnish marks.Wartime period
When the Winter War broke out in 1939, PKO’s Board voluntarily decided to ration the sale of scarce goods such as coffee, sugar, salt and paraffin.The proximity of the front line affected PKO’s operations in many ways. Stores located near the front line had to be kept ready for evacuation, and in Joensuu, operations were repeatedly disrupted by air raid alerts.During the war years, most of the stores’ male employees served in the defence of the country. Running the stores and customer service were entrusted to women and young people.Despite difficult times and hard work, the personnel participated in many joint efforts during their free time. After 1 July 1944, PKO’s stores were closed one day a week for a time, and the restaurant remained shut for 14 consecutive days, during which time the personnel participated in voluntary agricultural work.Despite the war, a new five-storey commercial building was completed for PKO at Siltakatu 8 in 1942. The building housed five retail departments, an office, a central warehouse, a first-class restaurant and a hotel with 36 rooms. The hotel was opened in June 1943, once the premises had been released from military use.Return to peace and the formation of a major cooperative
Following the interim peace, inflation quickly took hold, reducing the value of the Finnish mark. Prices rose so sharply that people could no longer afford goods that used to be well within their reach. At the same time, rationing remained strict. Towards the end of the 1940s, however, PKO succeeded in increasing its sales, thanks to the opening of eight new stores, among other reasons.By the beginning of the 1950s, Finland’s domestic and social policies began to stabilise. War reparations had been completed, and the shadows of the war gradually began to fade. In the economy, periods of growth and decline followed one another.A major milestone in PKO’s development was reached in 1956, when sales exceeded one billion Finnish marks. This marked PKO’s transition into the category of SOK’s large cooperatives In 1958, its sales ranked ninth among all SOK member cooperatives The development of the network continued, and the area of operation expanded.Investments in business development bore fruit. In the 1950s, PKO’s level of profitability rose above the average of SOK’s member cooperatives, even significantly so at times.1960–1990
In the mid-1960s, Finland faced a financial crisis. The economic challenges were also reflected in PKO’s operations. A major migration from the countryside to the towns and cities began. The population of North Karelia declined, and the number of co-op members fell.Although sales faltered, the cooperative’s performance in the early 1960s remained relatively strong. However, as the decade drew to a close, its performance declined.1970s
The 1970s were the most critical time for the entire S Group, with some even referring to this period as the years of danger. Results continued to deteriorate across all cooperatives, making it necessary to take action.In the early 1970s, the first long-term plan was drawn up, aiming to improve operational profitability through cooperative mergers and financial restructuring.1980s
A rescue plan called S-83 was drawn up for the whole of S Group. Values and mission were selected as the foundation of planning, with a strong customer focus as the guiding philosophy. Detailed business ideas and concepts were determined for each business unit, and all operations were organised into chains.An important part of the plan was to merge cooperatives into larger regional units. In the initial phase, the number of cooperatives decreased to 36. They came to be known as regional cooperatives.PKO in a critical state
In 1984, the cooperatives’ total losses reached their peak. PKO was no exception – according to the auditors’ report that year, the cooperative had little time left. Eino Tenhunen, who became PKO’s managing director in 1984, remarked at the time that the cooperative had only four problems: spring, summer, autumn and winter. In order for PKO to continue operating, SOK made its financial support conditional on a strict timetable for a recovery plan. The plan had to be approved by PKO’s Executive Board before the end of 1984, with immediate action required.At the same time, SOK assigned regional director Jorma Koistinen from the field department to work alongside Eino Tenhunen in preparing the plan. As a result, the PKO Strategy 85 was created. The document covered an assessment of the situation, an analysis, the necessary measures, an implementation schedule and contingency measures. In practice, this meant a drastic restructuring of PKO’s loss-making store network and the further development of its network of locations. In addition, PKO was required to significantly expand its network of locations in its main market area, Joensuu.New momentum for PKO’s business
Following the intense restructuring phase, the first major step in revitalising PKO’s services was to establish a comprehensive supermarket network. The Prisma store in Joensuu was opened in the autumn of 1989. Prisma turned out to be an immediate success, enabling the renewal of the store network.PKO’s performance began to improve markedly in 1990 and has remained profitable ever since.1990 onwards
A new corporate culture began to take shape after the challenging years. The mission of modern cooperative activities was defined: S Group’s purpose is to provide services and benefits for its co-op members. Profitable business operations made it possible to properly reward co-op members.Measured by all indicators, PKO is a highly successful company today. PKO’s sales now exceed EUR 400 million, and the company has nearly 1,400 employees.CEOs
- Heikki Turunen 1919-1923
- Akseli Salmela 1923-1927
- Antti Voutilainen 1927-1932
- Kaarlo Majanen 1932-1942
- Benjam Lehtonen 1942-1953
- Sulo Ripatti 1954-1971
- Tenho Kurppa 1971-1977
- Osmo Tuokko 1977-1981
- Tapio Peltola 1981-1984
- Eino Tenhunen 1984-2001
- Matti Pulkki 2001-2002
- Heikki Hämäläinen 2002-2007
- Juha Kivelä 2007-
