MAGNIT PJSC: Magnit and Delivery Club Launch Express Delivery from Retailer's Stores in Regions

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

(END) Dow Jones Newswires

October 12, 2020 03:00 ET (07:00 GMT)