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MAGNIT PJSC (MGNT)
MAGNIT PJSC: Russian Post and Magnit open first retail stores
28-Jun-2018 / 13:06 MSK
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
Press Release
Krasnodar
June 28, 2018
Russian Post and Magnit open first retail stores
Krasnodar, June 28, 2018: PJSC "Magnit", one of Russia's leading retailers
(the "Company", MOEX and LSE: MGNT), announces the start of sales in the
test stores located at the post offices in Moscow, Krasnodar and Ryazan
regions. Both urban and rural post offices - 12 fixed-site and 1 mobile
stores - have been chosen for the pilot project.
The project is being developed under the trilateral strategic partnership
between the Russian Post, PJSC Magnit and VTB Bank (PJSC).
The launch of test stores in the post offices provide Magnit chain with the
opportunity to expand the geography of sales and cover territories where the
opening of the traditional store is economically unreasonable. The
collaboration brings along optimization of expenses of Magnit and the
Russian Post. Customers get an additional service and can combine a visit to
the post office with shopping.
In the Russian Post's ongoing efforts to enhance the efficiency of the
retail stores, the cooperation with one of the Russian leading retailers is
the strategic pathway.
All products in the test stores excluding postal goods have been provided by
Magnit. The assortment of the fixed-site stores varies from 200 to 800 SKUs
depending on the space and the location of the post office while the car
shop offers about 50 SKUs. In the rural areas the product mix includes food
items, household cleaning products, basic necessities and associated goods
while the urban stores offer additional categories - beverages, snacks and
confectionary. Customers in villages can influence the assortment mix by
sharing their feedback on the product representativity.
"There are different consumer patterns across the territories. The
assortment of the test stores is adjusted to the local customer needs. Based
on the analysis of the internal Magnit data, the unique customer value
proposition has been developed for each test store. We are getting closer to
our customers and offer greater shopping experience. We believe that the
project will be successful and beneficial for both companies", - Olga
Naumova, Magnit CEO, said.
"One of the key priorities of our joint project is to test different retail
formats in the urban and rural post offices. Additionally, we plan to launch
home delivery - customers may choose products from the catalogues available
at the carriers. We will make the decision on the further project
development before year-end based on the results of the pilot stores", -
Nikolai Podguzov, CEO of the Russian Post, commented.
For further information, please contact:
Dina Svishcheva Deputy Director, Investor Relations
Email: Chistyak@magnit.ru
Office: +7-861-277-4554 x 15101
Media Inquiries Media Relations Department
press@magnit.ru
"Magnit" Company description:
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 March 31, 2018, Magnit operated 37 distribution centers
and 16,625 stores (12,283 convenience, 242 hypermarkets, 210 Magnit Family
stores and 3,890 drogerie stores) in 2,764 cities and towns throughout 7
federal regions of the Russian Federation.
In accordance with the audited IFRS results for 2017, Magnit had revenues of
RUB 1,143 billion and an EBITDA of RUB 92 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. Measured by market capitalization, Magnit is one of the largest
retailers in Europe.
"Russian Post" description:
Russian Post is a federal post operator, is included in the Russian
Federation strategic companies list. In accordance with the Russian Post, it
includes 42,000 offices across the country and has one of the biggest staff
- about 350,000 post workers.
Every year, Russian Post delivers over 2.5 billion letters and bills (of
them 1 billion letters are from state authorities) and 365 million parcels.
Russian Post services about 20 million subscribers in Russia by delivering 1
billion copies of print publications per year. The annual volume of
transactions processed by Russian Post is 3.2 trillion rubles (pensions,
payments and transfers).
Operational revenue of Russian Post in 2017 grew by 8,1% (13,3 bln rubles)
up to 178,1 bln rubles (164,8 bln rubles in 2016). Russian Post showed
profits in all areas of its business activities.
Actual net profit of Russian Post exceeded the planned indicators by 28% up
to 758 mln rubles.
ISIN: US55953Q2021
Category Code: MSCU
TIDM: MGNT
LEI Code: 2534009KKPTVL99W2Y12
OAM Categories: 3.1. Additional regulated information required to be
disclosed under the laws of a Member State
Sequence No.: 5690
EQS News ID: 699715
End of Announcement EQS News Service
(END) Dow Jones Newswires
June 28, 2018 06:06 ET (10:06 GMT)
