MAGNIT PJSC: Magnit and Delivery Club Launch Express Delivery

DJ Magnit and Delivery Club Launch Express Delivery

MAGNIT PJSC (MGNT) 
Magnit and Delivery Club Launch Express Delivery 
 
31-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 31, 2020 
 
                            Magnit and Delivery Club Launch Express Delivery 
 
    Delivery Club couriers have already started delivering goods from Magnit 
stores in Moscow. Delivery Club provides its users access to some 5000 items 
      available in Magnit Convenience stores, including non-food assortment. 
                                  Orders are delivered within 30-45 minutes. 
 
    Krasnodar, Russia (August 31, 2020): Delivery Club couriers have already 
  started delivering orders from ten Magnit convenience stores in Moscow, by 
the end of 2020, express delivery service will be available in all districts 
  of Moscow and St. Petersburg, as well as 15 largest cities of Russia. They 
  include, first of all cities with a million-plus population, where grocery 
           express delivery services are rapidly gaining popularity and show 
 exponential growth. With this partnership, Magnit makes a new big step into 
fast-growing e-commerce market. The Company expects to attract new customers 
 and increase existing clients' loyalty and frequency of their store visits. 
 
  This partnership with Magnit will allow Delivery Club to reach new heights 
      in grocery express delivery and eventually extend the geography of its 
service to virtually all cities where it has in-house logistics capabilities 
          (over 100 localities, not including Moscow and Leningrad regions). 
 
    In Moscow, Delivery Club users can order the entire assortment of Magnit 
      Convenience stores that participate in the project, except for tobacco 
products, alcohol, and pyrotechnics. This includes fresh vegetables, fruits, 
dairy and meat products, confections, drinks, pet food, household chemicals, 
   and others. There is no minimum order amount, and the delivery fee is 149 
   rubles, which will vary in the future: the larger the amount, the cheaper 
     the delivery, down to free-of-charge. All orders will be delivered in a 
contactless way: a delivery agent in a protective mask and gloves will leave 
   bags at a safe distance and wait for the customer to pick up their order. 
 
 Delivery Club will not only deliver products, but also, for the first time, 
      employ its own pickers to collect orders in Magnit stores. Later, this 
       function will be handed over to the retailer's employees, who will be 
       trained in proper collection procedures. Special KPIs will be set for 
         Magnit's order pickers to maintain the high quality of fulfillment. 
 
    "The partnership with Delivery Club is our next step towards creating an 
    omnichannel offering for our customers. We're seeing rapid growth in the 
  online food market, most notably in large cities, so it's important for us 
to provide customers with an attractive offer in this segment. I'm glad that 
  Delivery Club has become our partner in e-commerce development, since they 
have solid experience in express delivery. Magnit as the largest convenience 
  chain in Russia has great relevant offering. Combined we are able to offer 
    our customers a high-quality service, attractive products and prices," - 
           said Florian Jansen, Deputy CEO and Executive Director at Magnit. 
 
"Customers are becoming more demanding to the speed of delivery. We see that 
 they want to receive quickly not only food products they need now, but also 
    large orders comparable to an actual shopping trip. We can satisfy their 
   first need in cooperation with Samokat, a service that operates under the 
       "dark store" model. The launch of delivery from food retailers by our 
delivery agents will satisfy the second need. Our expertise in logistics and 
delivery speed, coupled with the extensive assortment of Magnit stores, will 
provide access to express delivery of goods to residents of dozens of cities 
       across the country already in 2020," - commented Guvenc Donmez, Chief 
   Executive Foodtech Officer at O2O Holding (joint venture of Mail.ru Group 
                                                              and Sberbank). 
 
                                    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 about Magnit: 
 
   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. 
 
                                            Information about Delivery Club: 
 
    Delivery Club is the market leader in the delivery of ready-made food in 
 Russia. The service fulfills over 5.5 million orders monthly. At the end of 
2019, Delivery Club's revenue amounted to 4.46 billion rubles; at the end of 
   the first half of 2020, it was 4.32 billion rubles. More than 28 thousand 
    eateries in over 250 cities across the country are connected to Delivery 
Club. In Moscow, St. Petersburg, and a number of other cities, Delivery Club 
users can order not only ready-made food from restaurants, but also delivery 
           of food products and everyday goods. Delivery Club is also making 
developments in the field of takeout ordering. In 2019, Delivery Club became 
       part of an O2O (online-to-offline) platform in the food and transport 
          markets, which is being established by Mail.ru Group and Sberbank. 
 
                                                 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.:   83164 
EQS News ID:    1125089 
 
End of Announcement EQS News Service 
 
 

(END) Dow Jones Newswires

August 31, 2020 03:00 ET (07:00 GMT)