DJ Magnit and Delivery Club Launch Express Delivery from Retailer's Stores in Regions
MAGNIT PJSC (MGNT)
Magnit and Delivery Club Launch Express Delivery from Retailer's Stores in
Regions
12-Oct-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 | October 12, 2020
Magnit and Delivery Club Launch Express Delivery from Retailer's Stores in
Regions
By the end of November 2020, the service will be available in more than 60
Russian cities
Krasnodar, Russia (October 12, 2020): Magnit PJSC (MOEX and LSE: MGNT; the
Company), one of Russia's leading retailers, and Delivery Club announce the
roll-out of their service for express delivery of products from the
retailer's stores across several regions. While initially, Delivery Club
users could order deliveries only in Moscow, the service now operates in
Samara, Krasnodar, and Novosibirsk as well.
In the nearest future, residents of St. Petersburg will also have the
opportunity to order products from the retailer. By the end of October 2020,
delivery will be available in 17 cities, and the number of stores connected
to the service will reach 200. By the end of November 2020, the service will
incorporate Magnit stores in more than 60 Russian cities. Users of the
Delivery Club app will have access to about 5,000 SKUs from Magnit
convenience stores, including non-food items. Delivery time is 30-45
minutes.
The assessment of results following the first stage of the partnership
showed that the composition of the basket of Delivery Club customers who
order goods from Magnit is almost identical to their purchases in the
retailer's brick-and-mortar stores. The most popular are fresh products
(fruits and vegetables), as well as fermented milk products, meat, and
bread. Most often, users ordered bananas, cucumbers, potatoes, bakery
products, and onions.
Delivery Club users place large orders in Magnit, comparable to a regular
shopping trip to the store-on average, about 10-12 items per basket. It is
interesting that there is already an established group of users ordering
products from Magnit stores on a regular basis. On average, they make 7-8
orders per month.
"We are pleased to see that the first customer response shows demand for our
joint service. We will continue to scale our deliveries and simultaneously
analyze our business processes in order to improve and update the service if
necessary. Rolling out to the regions is an important step that will allow
us to offer our consumers in different locations a new channel of
interaction with the Company and a modern format for shopping for everyday
goods,"-commented Florian Jansen, Magnit Deputy Chief Executive Officer,
Executive Director.
"Thanks to our logistics expertise and the wide geography of Magnit's
operations, very soon, residents of dozens of Russian cities will be able to
enjoy fast delivery of products through the Delivery Club app and website,
which has become especially important in the face of the challenging
epidemiological situation. Our high speed of delivery and the large
assortment offered by Magnit stores allow us to offer our users speedy home
delivery of all necessary products and essential goods for the entire
family", -noted Mukhit Seidakhmetov, Delivery Club Director of Operations.
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.: 85694
EQS News ID: 1140146
End of Announcement EQS News Service
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October 12, 2020 03:00 ET (07:00 GMT)
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