MAGNIT PJSC: Magnit Issues 33 Million Loyalty Cards

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: [e-mail] 
 
Office: [phone] 
 
Dina Chistyak 
 
Director for Investor Relations 
 
Email: [e-mail] 
 
Office: [phone] x 15101 
 
Media Inquiries 
 
Media Relations Department 
 
Email: [e-mail] 
 
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)