DJ Magnit opens e-pharmacy
MAGNIT PJSC (MGNT)
Magnit opens e-pharmacy
22-Sep-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 | September 22, 2020
Magnit opens e-pharmacy
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Krasnodar, Russia (September 22, 2020): Magnit PJSC (MOEX and LSE: MGNT; the
Company), one of Russia's leading retailers, began testing its online store
that allows ordering products from over 100 pharmacies throughout Moscow and
Moscow region. Customers can choose between two types of click & collect
service: 30 min pick-up of the currently available assortment at the nearest
store or next-day pick-up of the wide assortment delivered from warehouse.
In the future, the Company plans to launch a courier delivery service for
over-the-counter medications.
Residents of Moscow and Moscow region can now use the Magnit Pharmacy
website [1], Magnit's smartphone app, or its Call Center to reserve
pharmaceuticals, medicinal cosmetics, personal hygiene products, baby food,
medical devices, and seasonal items. The assortment currently includes
around 5,000 articles; although the Company plans to expand it significantly
by the end of the year. Customers can make reservations around the clock and
browse the remaining stocks, drug formulas, and other user information. The
pick-up service itself is tied to the working hours of the pharmacies, and
customers will have to provide a relevant document when collecting
prescription medications.
There is no minimum order amount. For reservations collected on the same
day, the prices are identical to those in brick-and-mortar pharmacies.
Pharmacy employees prepare the orders and put them into individual
packaging. Magnit implemented special KPIs (key performance indicators) for
its order pickers and other staff involved in preparing the order. The
Company created a dedicated customer care division to control the level of
service provided and manage customer complaints. In the future, this
division will become a part of the Company's omnichannel ecosystem and will
support all its Internet services.
For overnight orders from the warehouse assortment, the price of a product
will be compared to other relevant online offerings available on the market,
which will allow customers to have the best value for their money. Order
preparation and delivery will be handled by an automated distribution center
operated by the distributor-Magnit Pharma-in Moscow.
Another important feature and advantage of Magnit's e-pharmacy for the
customers is the possibility to accrue and redeem bonus points under the
Company's cross-format loyalty program, which enables participants to shop
in any of the Magnit's formats that is convenient for them, both grocery and
non-food, and use bonus points to pay for their entire purchase irrespective
of the amount. The e-pharmacy will have the same price promotions as the
brick-and-mortar ones, with dedicated marketing projects planned in the
future.
All components of Magnit's e-pharmacies, including the virtual storefront,
brick-and-mortar pharmacies, distribution, and delivery, are housed within a
single company. This model allows for end-to-end control of service quality
and business process efficiency as well as high utilization of logistics and
retail capacities, and enables the Company to capture customers via a number
of different customer interaction channels.
The Company plans to complete the testing for its e-pharmacy by the end of
2020, whereby it will make the decision on whether to scale the project to
other Russian regions.
"The e-pharmacy is the first of our own customer offerings in the e-commerce
segment. Until now, our experience was limited to partnerships. We plan to
use our e-pharmacy to perfect the technologies and the operational model for
our future launch of a food delivery service and, ultimately, for Magnit's
omnichannel ecosystem,"-noted Jan Dunning, President and CEO of Magnit
Retail Chain.
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
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 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 reviewed 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.: 84590
EQS News ID: 1134707
End of Announcement EQS News Service
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(END) Dow Jones Newswires
September 22, 2020 03:00 ET (07:00 GMT)
