MAGNIT PJSC (MGNT)
MAGNIT PJSC: Magnit Issues 33 Million Loyalty Cards
05-Feb-2020 / 12:00 MSK
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
Magnit Issues 33 Million Loyalty Cards
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Krasnodar, Russia (5 February, 2020): Magnit PJSC (MOEX and LSE: MGNT; the
Company), one of Russia's leading retailers, started rolling out its loyalty
program in August 2019, having successfully piloted it in three Russian
regions. In the six months after the launch, the Company issued over 33
million cards. As of the end of January 2020, customers have activated over
60% of the issued cards and started using them when shopping at Magnit.
Today, around 20 million unique customers are active participants of the
loyalty program. The Company will finalize the program roll-out this
February.
Magnit is closely monitoring the performance of the loyalty program in the
three pilot regions, where it has been in place since late March of 2019 and
is currently in its most mature state. In these areas, the card is used to
make every second purchase, and the share of such purchases in sales reaches
64% (for the large format, this figure is at 72%). Data obtained by studying
a control group of customers in the pilot regions has shown that, during the
time they have participated in the program, their purchase frequency
increased by 3% [1] . Furthermore, the loyalty card has also proved its
worth as an effective cross-format tool-the share of customers who shop
across several Magnit formats increased by 15 pp to 52%1.
As of the end of January 2020, the card's penetration in tickets across all
regions where the Company operates was 39%, with the share in total sales
reaching 58%.
In 2020, Magnit will keep developing its loyalty program strengthening its
attractiveness for the customers, allowing them to rack up points faster. In
autumn 2019, the Company partnered up with Post Bank and Tinkoff Bank to
launch co-branded bank cards that grant their holders increased bonus awards
for Magnit's loyalty program. The Company will continue to launch joint
projects with Russian banks, as well as expand its cooperation with major
payment systems. Magnit also plans to broaden the range of services via its
mobile app.
The data that the loyalty cards provide will enable the Company to achieve
much better understanding of customer needs. Magnit aims further improvement
of category management, merchandising, assortment localization, price and
promo proposition, as well as development of brands and private labels. The
data from the loyalty program will also offer Magnit a chance to switch to
targeted digital marketing with tailored offers to the customers via loyalty
card.
"We're more than satisfied with how the roll-out of the loyalty program is
progressing. It has already exceeded our initial expectations. Although this
is still an early stage, now we have a very effective tool of direct
communication with customers increasing their loyalty to the Magnit brand
and becoming a core element of our new CVP. In addition to that, the data
obtained via the loyalty program will allow us to increase the efficiency of
the business processes and decision-making through big data processing and
deep analysis",- noted Jan Dunning, President and CEO of Magnit.
Magnit's loyalty program allows the customers to get and spend bonus points
across all formats of the chain: convenience stores, supermarkets,
drogeries, and pharmacies. The point award system is one of the most
generous on the market: for every purchase, 0.5% to 2%[2] of the cost will
go to the customer's bonus account. The base awards are complemented by
personal ones, granted for participation in various promotional activities.
One bonus point equals one ruble. Magnit's loyalty card is granted for
tickets over a certain amount; it can also be purchased separately for 25
rubles at any of the chain's stores, or created and used in a "virtual" form
for free using the mobile app. Bonus points may be used to pay for up to
100% of the purchase.
For further information, please contact:
Dmitry Kovalenko
Director for Investor Relations
Email: dmitry_kovalenko@magnit.ru
Office: +7 (861) 210-48-80
Dina Chistyak
Director for Investor Relations
Email: dina_chistyak@magnit.ru
Office: +7 (861) 210-9810 x 15101
Media Inquiries
Media Relations Department
Email: press@magnit.ru
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 September 30, 2019, Magnit operated 38 distribution
centres and 20,497 stores (14,507 convenience, 467 supermarkets and 5,523
drogerie stores) in 3,694 cities and towns throughout 7 federal regions of
the Russian Federation.
In accordance with the unaudited IFRS management accounts for 9M 2019,
Magnit had revenues of RUB 1,000 billion and an EBITDA of RUB 63 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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[1] As of the end of December, 2019
[2] % of bonus points awarded depends on the amount purchased during the
last month
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.: 44757
EQS News ID: 968411
End of Announcement EQS News Service
(END) Dow Jones Newswires
February 05, 2020 04:00 ET (09:00 GMT)
