Since Keells opened its first store at Liberty Plaza, Colpetty, in 1991, the customer has always come first. At the time, modern retail was still new to Sri Lanka, and shopping was seen as an occasional event rather than a daily convenience. Keells set out to change that, towards a self-service supermarket model with wide aisles and centralised checkout, built on fresh produce sourced directly from local farmers and value-for-money pricing.
This mission to build trust among consumers who wanted better quality and fresher food culminated in the 2025/26 financial year with a brand valuation of Rs22.73 billion. This performance, supported by a 14.3% rise in same-store footfall, coincided with the brand reaching its 150-store milestone, an achievement that represents the widespread availability of trusted, world-class retail across the nation. By aligning its operations with a core purpose of improving the nation’s quality of life, the business has evolved through three strategic phases: the Foundational Era (1991 to 2006), the Transformational Era (2007 to 2018), and the Future Ready Era (2019 to Present).
Laying the Foundation for Daily Convenience
The roots of the brand’s retail operations lie in the meat-processing business of the John Keells Group, specifically Keells Food Products (KFPL), which operated a small number of premium meat delis during the 1980s. These outlets functioned as an initial proof of concept for organised food retail. Jaykay Marketing Services (Pvt) Ltd, originally KFPL’s marketing arm, was formally repositioned in December 1991 to manage the Group’s entry into full-scale retail, opening its first supermarket at Liberty Plaza, Colpetty.
This foundational period tested the operational resilience of the business almost immediately. Just months after the Liberty Plaza launch, the store was completely submerged during the 1992 floods. The team worked day and night to reopen the premises, ensuring a distressed community regained access to essential food and hygiene products. This effort established a protocol for crisis management that would define the brand’s response to national challenges for decades to come, most recently demonstrated in the recovery of 13 outlets affected during Cyclone Ditwah in 2025.
As the network expanded, physical locations were utilised as staging grounds for innovations that elevated nutritional standards and freshness expectations. The 1997 opening of the Crescat store introduced the nation’s first in-store bakery, alongside fresh salad bars, on-site coffee grinding, and a range of prepared foods. These features were designed to address the cultural tension regarding food safety, signalling a standard of quality that allowed consumers to shop with confidence. The introduction of prepared items, such as Baked Alaska, catered to consumers seeking retail experiences that matched their rising expectations.
Keells strengthened the logistical backbone for this expansion in 1993 with the opening of the Peliyagoda Distribution Centre. This facility introduced a level of inventory centralisation previously unseen in local retail, ensuring that the promise of product availability remained consistent as the store footprint grew. By 2000, the business had institutionalised its point-ofsale systems, enabling it to run promotional campaigns. The “Go Bananas” promotion, which awarded a yellow Beetle car as a grand prize, resonated so strongly with suburban families that its planned one-month duration was extended to six months due to unprecedented customer demand.
The brand’s digital DNA was established as early as 2001 with the launch of its first e-commerce site. While initial uptake was limited by national internet penetration, the platform helped the Sri Lankan diaspora support their loved ones at home through trusted grocery orders. By 2006, the brand had built the institutional foundation required to scale its mandate for freshness nationally.
Freshness at Every Step
Across 35 years, Keells has built freshness into every link of its supply chain, from farmer partnerships and greenhouses to daily bakery production and store shelves.
Scaling Experience and Livelihoods
In 2007, the business entered its transformational era by shifting focus toward institutionalising its retail standards. A central pillar of this strategy was the establishment of the Keells Retail Academy, which provided structured training and clear career progression for a team that would eventually grow to over 6,500 individuals. By creating a professional pathway in a sector frequently characterised by high turnover, the business became a vital entry point into the formal economy for the nation’s youth, whose average age within the company is just 20 to 22 years. This investment in human capital ensured that the brand’s promise of trust was delivered by a team equipped with nationally recognised qualifications, helping young people build long-term vocational skills.
Simultaneously, the company recognised that the lifestyle aspirations of the emerging Sri Lankan middle class required a more consistent and accessible retail environment. In 2012, Keells transitioned to a standard store format, where the 7,000-square-foot outlet was replicated with dedicated parking and a curated layout. This standardisation was designed to give suburban customers the same quality shopping experience previously available only in the capital. By turning supermarkets into aspirational destinations, the brand bridged the gap between traditional trade and the evolving needs of modern families.
The commitment to affordability was further cemented in 2009 with the launch of the K-Choice own-label range. Every product in this range was subjected to rigorous quality checks to ensure that customers could shop with confidence even at a lower price point. In 2022, this private-label strategy was refined to offer products of comparable quality to leading benchmarks but priced approximately 10% lower. The own-label portfolio now stands at more than 350 products across 90 categories.
The mandate for freshness was given a new visual identity in 2017 with a comprehensive rebranding that saw the transition from Keells Super to Keells. The launch of the Green Store concept used a new, primarily green colour palette to signal a commitment to quality produce and an engaging service culture.
By the close of this era in 2018, the business had successfully standardised its operations and institutionalised its culture of service. This period of scaling ensured that retail excellence was no longer confined to the capital, but had become national infrastructure. Having built this scale and stabilised its format, the company was positioned to integrate its supply chain more deeply and transition into a truly national connector of people and produce.
“Together with fair pricing, prompt pay ments, and a reliable market for produce, these initiatives help strengthen farmer live lihoods while supporting a consistent supply of fresh produce to the company’s retail network.”
The Future Ready Era would extend this focus on the customer with the 2021 introduction of a new store format as well as self-checkout counters, giving shoppers greater control over their time in-store.
Regional Integration and Food Security
The transition towards national-scale infrastructure was defined by the decision to integrate the brand’s supply chain directly with the country’s agricultural heartlands. By establishing a direct-sourcing model anchored by a network of 10 collection centres, Keells bypassed traditional procurement intermediaries to work directly with 4,000 active farmers. By 2026, this network was facilitating the movement of billions of rupees in produce annually. This strategy functions as a mechanism for stabilising rural livelihoods, providing farmers with fair prices, rapid payments, and a guaranteed national market that reduces their exposure to the price volatility of traditional wholesale trade.
This commitment to strengthening regional agricultural resilience is reflected in the company’s Keells Govi Diri farmer support programme, launched in partnership with the Smallholder Agribusiness Partnership Programme and other stakeholders. The programme provides farmers with technical knowledge, training and access to climate-resilient farming practices, including drip irrigation, poly mulching, greenhouse cultivation and Good Agricultural Practices (GAP) certification, to improve productivity, quality and longterm sustainability.
Complementing these efforts, a later collaboration with the John Keells Foundation introduced soil testing to support more informed soil and nutrient management. Together with fair pricing, prompt payments, and a reliable market for produce, these initiatives help strengthen farmer livelihoods while supporting a consistent supply of fresh produce to the company’s retail network.
This national connector role came into sharper focus with the brand’s 2025 expansion into the Northern Province. While Keells had been sourcing fresh produce from Jaffna through its collection centre since 2015, the opening of its first supermarket in the region extended this long-standing supply chain relationship into a direct retail presence.
Alongside bringing the Keells shopping experience to Northern consumers, the store created a new platform to showcase regional produce, including local specialities such as Jaffna mangoes and purple yams, within the company’s nationwide retail network. Rather than establishing a new connection, the expansion strengthened an existing one by linking sourcing and retail more closely across the country.
This emphasis on quality extends beyond the farm to the company’s value-added food operations, where GMP-certified hot food kitchens help ensure consistent food safety, hygiene and quality standards across its growing range of bakery and prepared food offerings.
Personalised Care and Inclusion Through Data
The transition into the Future Ready Era was marked by a shift from broad operational mandates to a strategy increasingly informed by deeper customer understanding. As Sri Lanka’s retail landscape evolved, Keells recognised that creating value required a more nuanced understanding of the diverse needs, lifestyles and purchasing habits of the communities it serves.
This evolution was supported by the John Keells Group’s investment in data and analytics capabilities through OCTAVE, the Group’s Data and Advanced Analytics Centre of Excellence established in 2019. By leveraging advanced analytics, Keells has strengthened its ability to interpret demand patterns, improve decision-making and respond more effectively to changing customer needs.
These data-driven capabilities are supported by the physical infrastructure needed to put insights into action, such as at the Kerawalapitiya distribution centre. Spanning 260,000 square feet, this facility centralises offerings across fresh, dry, and chilled categories, providing the logistical scale necessary to operationalise data-driven insights. The infrastructure allows for the “breaking of boxes,” where incoming cases are broken down and repacked so that smaller
outlets receive the precise number of units required rather than being forced to carry excess inventory. This ensures that even suburban locations can maintain the highest standards of freshness and availability without the waste associated with overstocking.
This digital layer is most visible in the management of freshness through automated “embedded signals”. AI models now balance shelf life and demand trajectories to guide pricing and replenishment, ensuring that produce reaches the customer at the peak of quality. By linking staff rosters and task prioritisation to these signals, Keells ensures that the store experience remains consistent and responsive to the flow of customers. The quantitative success of this approach was evident in the financial year ending 31 March 2026, where a 14.3% increase in same-store footfall demonstrated that precision in availability and pricing encourages higher shopping frequency and trust.
The Keells Nexus loyalty programme serves as the central bridge for this customer connection. Since its evolution from a card-based system in 2010 to a mobile-led solution in 2014, the programme has focused on rewarding everyday moments. A significant milestone was reached in February 2026 with the launch of the Keells Nexus App. The platform recorded over 200,000 downloads within its first 45 days, providing a direct digital link to a base that now totals
2.9 million registered members. Beyond simple points tracking, the app enables personalised promotions and exclusive partner rewards, allowing Keells to tailor its value proposition to the individual financial priorities of households.
This commitment to growth through connection extends into the supply chain through the Keells Advanced Network Exchange (KANE).
This supplier collaboration platform has automated demand planning for over 460 dry suppliers, 70% of whom are small and medium-sized businesses. By providing these partners with real-time visibility into order requirements through the Kerawalapitiya hub, the system reduces stock-holding costs and operational uncertainty. This ensures that even the smallest local manufacturers can scale their operations alongside a national retail leader, fostering a more resilient and inclusive domestic business ecosystem.
“The commitment to national wellbeing is most visible in the “A Brighter Tomorrow For Our Little Ones” initiative, which addresses nutritional gaps in early childhood. As of May 2026, this programme has provided 538,000+ meals to 4,500+ children across 116 pre-schools.”
Circularity and a Thriving Nation
Keells has transitioned its sustainability and community commitments into a model of circular retail, where the development of social and natural capital is measured with the same rigour as financial metrics. This shift acknowledges that long-term operational stability is inseparable from the health and resilience of the environment and the communities in which the brand operates.
The brand’s environmental strategy prioritises increasing reliance on renewable energy and reducing dependence on single-use plastics. Since 2019, Keells has introduced a range of initiatives to reduce single-use polythene, including compostable alternatives at fresh produce, meat and seafood counters, alongside reusable bag programmes and other packaging interventions. This operational shift is reinforced by consumer incentives, with Keells tracking over 129,000 unique reusable bag users who receive a Rs6 discount for each transaction made with a reusable bag. Beyond packaging, the brand has scaled its renewable energy footprint to mitigate rising grid costs. Solar installations are now active across 115 stores and the primary distribution centre, and the business remains committed to meeting 25% of its total electricity consumption through self-generated renewable sources in the medium term.
Circularity is further operationalised through a two-tier system for managing food waste. Through the “Perfectly Imperfect” initiative, Keells creates a market for cosmetically flawed but consumable produce, which has successfully reduced farm-gate waste by 20% to 25%. For surplus produce and prepared meals that remain fit for consumption, the business operates a national redistribution network across 142 outlets. This programme facilitates the redistribution of over 250,000 kg of food every month to more than 3,000 beneficiaries, including 60 charities and 25 farms.
The commitment to national well-being is most visible in the “A Brighter Tomorrow For Our Little Ones” initiative, which addresses nutritional gaps in early childhood. As of May 2026, this programme has provided 538,000+ meals to 4,500+ children across 116 pre-schools. The funding model ensures scalability, with Keells funding the fifth child for every four supported by customer contributions via a dedicated card system. To ensure the long-term sustainability of this effort, the company has established 116 community gardens alongside these pre-schools, allowing parents and local communities to independently maintain nutritional security.
Said commitment extends beyond nutrition to child safety. Keells has introduced age-appropriate personal safety awareness sessions at partner pre-schools, equipping both children and parents with the tools to recognise and respond to unsafe situations.
Keells also functions as a primary entry point into the formal economy for the nation’s youth, who make up a workforce of over 6,500 with an average age of 20 to 22 years. Through the Skill Into Progress (SKIP) programme, the business has graduated 1,000+ youth across 10 locations, providing a 4.5-month curriculum focused on practical English and communication skills. With a retail workforce of over 6,500 employees that is now 50% female, the business uses its scale to professionalise a sector once viewed as purely transactional. Internal empowerment is supported by the SanNap initiative, a John Keells Group-wide programme under its “ONE JKH” framework that provides free sanitary products to female employees to address period poverty, and the “She Rises” programme, which upskills women with leadership qualities for senior roles. Holistic well-being is further supported by the “Peace Pod,” providing confidential mental health counselling to team members.
The robustness of these community linkages is tested during periods of national crisis. Following the devastation of Cyclone Ditwah in November 2025, Keells committed to support 500 pre-school children with meals in flood-affected communities. It also launched a farmer relief programme providing fertiliser and agrochemical support packages to 150 impacted suppliers, while the broader network facilitated the distribution of water, dry rations, and prepared meals to flood-affected communities. This ability to maintain operational continuity while supporting regional recovery underscores the brand’s role as a vital infrastructure for the nation.
The Future Horizon
Modern trade penetration in Sri Lanka is approximately 17%, which lags significantly behind regional peers such as Thailand at 40%, Malaysia at 49%, and Singapore at 70%. This disparity is further highlighted by trade density metrics, as Sri Lanka currently supports one modern trade outlet for every 30,000 people, compared to 7,300 in Thailand and 4,500 in Malaysia. For Keells, these figures represent a clear runway for growth that extends well beyond its current 150-store milestone, one that reaches past the capital to the same underserved regions the Jaffna expansion has already begun to prove out. To capture this headroom, the business has committed to an expansion pace of 10–15 new outlets per annum, focusing on proven standard formats that balance capital expenditure with operational efficiency.
The next phase of the digital journey will be defined by the transition from analytical systems that inform decisions to agentic systems that execute them.
“The brand’s environmental strategy prioritises increasing reliance on renewable energy and reducing dependence on single-use plastics.”
Keells is supported in this journey by OCTAVE. The brand is also repositioning itself as a broader lifestyle ecosystem through the integration of sustainable mobility. Motivated by the growing base of BYD electric vehicle owners, the business has installed 44 EV chargers across its network, in collaboration with Volt Charge, turning its locations into essential nodes of the nation’s energy transition. Reflecting on the 35 years since the Liberty Plaza debut, the business enters its next cycle from a position of financial strength, where years of capital deployment are translating into cash generation.
The mandate remains the same as it was in 1991, which is to provide food and a retail experience that the nation can trust, supported by a belief that through resilience and innovation, life gets better every day.