Magnit to Roll Out Bakery Project in Its Convenience Stores
Krasnodar, Russia (January 25, 2022): Magnit PJSC (MOEX and LSE: MGNT; the Company, Magnit), one of Russia's leading retailers, announces the expansion of the assortment of its convenience stores with fresh bakery products of in-store production in the first quarter of 2022. At the first stage, bakeries will appear in 100 stores in different regions, i.e. Moscow, St. Petersburg, Central Russia, the South and Siberia, and it is planned to multiply the number of stores by the end of 2022. This will allow to increase the average ticket and store traffic. Last year, Magnit has already launched the pilot project in 21 stores in Moscow, St. Petersburg, Voronezh, Krasnodar, and other cities. Sales of bakery products in these stores have increased by 2-3 times and the traffic increased by 6-7%.
In 100 Magnit Convenience stores, customers will be offered croissants, hot dogs, puffs, fresh bread, and other pastry, including combo sets. Some stores will also offer various kinds of takeaway coffee. Magnit will differentiate its assortment of bakery products - which amounts to 22-44 items - depending on the store location. The assortment will also depend on the customer, pedestrian and car traffic, and the competitive environment.
An up-to-date equipment will be installed in stores, and professional technologists will make bread and bakery products. Specialists will choose individual production time for each store. For example, if there are offices and business centers nearby, then bakery products will be made in the morning, so that employees have time to have a bite. If the area is residential, then bread and other items will be baked in the afternoon towards evening. The quality will be controlled via the telemetry monitoring, i.e. all the equipment will be connected to the system allowing remote monitoring of processes in real time.
Bakery departments will be visually highlighted in the sales area and arranged so that visitors could see them immediately when entering the store and make a quick purchase. Self-service checkouts will be installed to save the time of customers.
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Ruslan Ismailov
Deputy CEO, Director of Magnit Retail Chain Management
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"We see customer demand for Grab&Go food - these are ready-made meals that are easy and convenient to take with you and eat right away, for example, on the way to work. The opening of bakery departments will make our stores additional centers of attraction and offer customers more useful and popular services".
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Note to editors
"Magnit" is one of Russia's leading retailers. Founded in 1994, the company is headquartered in the southern Russian city of Krasnodar. As of September 30, 2021, Magnit operated 45 distribution centers and 25,315 stores in 3,840 cities and towns throughout 7 federal regions of the Russian Federation.
In accordance with the unaudited IFRS 16 management accounts results for 9M 2021, Magnit had revenues of RUB 1,311.5 billion and an EBITDA of RUB 151.4 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+.
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Forward-looking statements
This document contains or may contain forward-looking statements that may or may not prove accurate. For example, statements regarding expected sales growth rate and/or 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.
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