MAGNIT PJSC: Magnit Opens Metropolitan Convenience Store

DJ Magnit Opens Metropolitan Convenience Store

MAGNIT PJSC (MGNT) 
Magnit Opens Metropolitan Convenience Store 
 
15-Oct-2020 / 12:00 MSK 
Dissemination of a Regulatory Announcement, transmitted by EQS Group. 
The issuer is solely responsible for the content of this announcement. 
 
Press-Release | Moscow | October 15, 2020 
 
                                 Magnit Opens Metropolitan Convenience Store 
 
     The 665-square-meter store with a café opened its doors in Moscow at 45 
Saltykovskaya Street. The Company updated the store to cater to the needs of 
metropolitan residents, completely reworking the interior and optimizing the 
  assortment while also making the overall ambiance more emotionally charged 
                          and digitalizing every aspect of the store itself. 
 
     Moscow, Russia (October 15, 2020): Magnit PJSC (MOEX and LSE: MGNT; the 
    Company), one of Russia's leading retailers, announce the opening of the 
  metropolitan convenience store. Historically, Magnit Convenience stores in 
  large cities were very similar to those in smaller localities. At the same 
     time, customer preferences in metropolitan areas are distinguished by a 
  number of important characteristics. Magnit continues to break its formats 
          down into clusters based on customer trends prevalent in different 
 localities, and has now opened a metropolitan store that was designed based 
 on the look-and-feel approach and focuses on ambiance, useful services, and 
digital solutions while maintaining attractive prices. For improved customer 
   convenience, the same building also houses a Magnit Pharmacy. The Company 
    plans to use the elements of the metropolitan store concept in different 
                             combinations in other localities in the future. 
 
    The updated Magnit store boasts an assortment of around 6,000 SKUs, with 
  particular focus on the Fresh and Ultra-Fresh categories, which occupy 35% 
of the sales area: fruits, vegetables, dairy, and fresh bakery products. The 
assortment was expanded with Magnit Freshness and other private labels, such 
 as the Company's own products and local offerings, including farm products. 
    In addition to traditional articles, the assortment was further extended 
  with exotic fruits, berries, culinary products, and cross-category offers. 
  The range of dietary products and products for balanced diet was broadened 
   as well. The number of items in the middle and middle+ price segments was 
         increased across the entire assortment. Magnit also highlighted its 
selection of wines, picked to satisfy the tastes of the capital's residents. 
 
The store has its own bakery and a professional coffee machine. Customers 
may stop for a bite in the 11-seat café with free Wi-Fi. The assortment of 
eat-and-go products includes 100 SKUs such as bakery products, combo sets, 
and fresh juices. 
 
The store space area is arranged with due consideration of the purposes a 
customer might have when visiting the store, and provides for three 
different customer paths. For example, a customer wishing to stock up on 
products for the entire family can easily make their way through all 
products categories. The second path was created for novelty enthusiasts: 
its passes interesting propositions in the Fresh category, coffee, 
confections, ready-to-eat meals, and ends at self-service checkouts. The 
third path will suit active gadget users who want to spend less time 
shopping and usually make fairly small purchases. It includes the most 
attractive propositions in the fruits and vegetables area, as well as dairy 
and bakery products and drinks. 
 
   The store was outfitted with upgraded equipment and utilizes a variety of 
          digital solutions in order to help customers shop, reduce time for 
  purchases, and optimize routine processes for the store personnel. The new 
   store is also the first to have dual-mode checkouts that can work both as 
self-service terminals and as standard cashier-operated checkouts. This will 
         help the store avoid the queues and enable it to change the mode of 
     operation depending on traffic intensity. LED screens in the sales area 
 transmit useful content; there are also media shelves that make the contact 
   with customers more interactive. The store is fully equipped with bicolor 
    electronic price tags that allow updating product information faster and 
      save time for the staff. Customers may use price checkers and customer 
  displays at checkouts, test the face-recognition-based payment technology, 
  or scan goods using the MobiScan solution and pay for them at self-service 
                                                                  checkouts. 
 
   The store design and zoning have been updated with the use of comfortable 
    colors. Decorative elements are made of cardboard and plywood instead of 
   plastic. The principles of Magnit's sustainable development strategy were 
     also taken into account when creating the new concept: for example, the 
  Company installed reverse vending machines (special kiosks to collect used 
  plastic packaging), as well as separate stations for collection of plastic 
                                                         caps and batteries. 
 
  "Large cities are characterized by their own distinctive consumer behavior 
      patterns. There is now a surging demand for fresh products and healthy 
nutrition; customers are trying to save time, and look not only at the price 
and quality of products, but also at emotions they get during shopping. It's 
         important for us to be aligned with the preferences of metropolitan 
residents, and that's exactly why we've established a separate store cluster 
      to cater to their needs, which offers a wide variety of options in one 
       place. We'll study the customer feedback, identify areas that require 
   improvement, and will use different elements of this new store concept in 
     our development and remodeling program,"-said Ruslan Ismailov, Magnit's 
                        Deputy CEO and Director for Retail Chain Management. 
 
                                    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. 
 
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.:   85972 
EQS News ID:    1141094 
 
End of Announcement EQS News Service 
 
 

(END) Dow Jones Newswires

October 15, 2020 05:00 ET (09:00 GMT)