MAGNIT PJSC: Magnit Expands Testing of Magnit City Format

MAGNIT PJSC (MGNT) 
MAGNIT PJSC: Magnit Expands Testing of Magnit City Format 
 
06-Aug-2020 / 10:00 MSK 
Dissemination of a Regulatory Announcement, transmitted by EQS Group. 
The issuer is solely responsible for the content of this announcement. 
 
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: 
 
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 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. 
 
Forward-looking statements: 
 
 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. 
 
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.:   80270 
EQS News ID:    1111445 
 
End of Announcement EQS News Service 
 
 

(END) Dow Jones Newswires

August 06, 2020 03:00 ET (07:00 GMT)