Press-Release | Krasnodar | August 6, 2020
Magnit Expands Testing of Magnit City Format
Krasnodar, August 6, 2020: Magnit PJSC (MOEX and LSE: MGNT; the Company), one of Russia's leading retailers, has updated the concept of its Magnit City stores, and, as part of the pilot, the Company plans to open 30 more stores by the end of 2020. The stores with new CVP (customer value proposition) have been already opened in Saint Petersburg, Nizhny Novgorod and Chelyabinsk. Magnit plans to open new Magnit City stores in Moscow, Saint Petersburg, Novosibirsk, Ekaterinburg, Kazan, Nizhny Novgorod, Chelyabinsk, Omsk, Samara, Krasnodar, Rostov-on-Don, Ufa, Krasnoyarsk, Voronezh, Perm, Volgograd and Tyumen. The format is focused on large cities with population over 500 thousand inhabitants.
The first three pilot stores that were opened in Moscow and Krasnodar in summer 2019 received positive feedback from customers and became commercially viable.
Magnit City are compact stores of "Grab & Go" concept located in places with high traffic with the total space of 150-230 sq. m and the assortment of up to 2,000 SKUs. This format is aimed primarily at a young audience of 21 to 34 years old. The stores feature cozy interior with the café area where customers can charge their cell phones and use free Wi-Fi. Cafés in Magnit City operate in accordance with the current regional legislation.
Revised in-store design and interior solutions helped to create more comfortable atmosphere in the renewed Magnit City stores. The focus in the design of retail space was made on natural colours of popular craft and woody tones, introduced new pointers and signage bringing emotional communication with customers, now customers can use baskets made of recycled plastic, and reusable bags for fruits.
The main share in sales belongs to culinary products - these are ready-to-eat meals. The assortment of ready-to-eat products was expanded nearly by one and a half, including new types of combo sets, fresh drinks, and an increased number of fresh fruits and vegetables that you can eat "right here and right now". Fresh pastry is baked directly in stores, and the store assortment includes takeaway coffee and tea, snacks, washed fruits, dairy products, ice-cream, and drinks. For the convenience of customers, there were allocated special areas with healthy food and products for children.
This pilot expansion will allow Magnit to examine customers' feedback in more detail, to adjust the assortment and to add new services to its proposition.
"We are satisfied with the performance of the first Magnit City stores that were opened last year, and we see the potential for their development. Our goal is to cover the maximum customers' needs as well as providing with new interesting retail formats. Magnit City is targeted at young audience that seeks to save their time, follows to the "eat out" trend, and wants to get a complex of useful services and ready-made solutions in one place" - said Jan Dunning, President and CEO of Magnit.
For further information, please contact:
Director for Investor Relations
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Director for Investor Relations
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Media Relations Department
Note to editors:
Public Joint Stock Company "Magnit" is one of Russia's leading retailers. Founded in 1994, the company is headquartered in the southern Russian city of Krasnodar. As of June 30, 2020, Magnit operated 38 distribution centres and 20,894 stores (14,581 convenience, 472 supermarkets and 5,841 drogerie stores) in 3,710 cities and towns throughout 7 federal regions of the Russian Federation.
In accordance with the unaudited IFRS 16 management accounts results for 1H 2020, Magnit had revenues of RUB 763.4 billion and an EBITDA of RUB 86.9 billion. Magnit's local shares are traded on the Moscow Exchange (MOEX: MGNT) and its GDRs on the London Stock Exchange (LSE: MGNT) and it has a credit rating from Standard & Poor's of BB.
This document contains forward-looking statements that may or may not prove accurate. For example, statements regarding expected sales growth rate and store openings are forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause actual results to differ materially from what is expressed or implied by the statements. Any forward-looking statement is based on information available to Magnit as of the date of the statement. All written or oral forward-looking statements attributable to Magnit are qualified by this caution. Magnit does not undertake any obligation to update or revise any forward-looking statement to reflect any change in circumstances.