MAGNIT PJSC: Magnit Tests Magnit Cosmetic Mini Format

DJ Magnit Tests Magnit Cosmetic Mini Format

MAGNIT PJSC (MGNT) 
Magnit Tests Magnit Cosmetic Mini Format 
 
25-Nov-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 | November 25, 2020 
 
                                    Magnit Tests Magnit Cosmetic Mini Format 
 
       The Company opened the first Magnit Cosmetic mini format store with a 
          selling space of about 65 sq. m in Moscow on the basis of a Magnit 
      Convenience at 126 Pervomayskaya St. The cosmetics store, which offers 
   customers around 4,000 products, will enlarge the customer proposition of 
    Magnit Convenience store, ensuring higher customer loyalty and enhancing 
                                           sales density of the main format. 
 
 Krasnodar, Russia (November 25, 2020): Magnit PJSC (MOEX and LSE: MGNT; the 
  Company), one of Russia's leading retailers, is testing the mini format of 
    its Magnit Cosmetic to seamlessly integrate it into existing convenience 
   stores in economically efficient locations. Magnit cosmetic is a separate 
store with a corporate design maintaining continuity of drogerie format. The 
  outlet has its own personnel and a unique assortment matrix differentiated 
     from that of convenience stores. Magnit cosmetic stores target a female 
          audience and offer a selection of products that includes perfumes, 
    decorative and care cosmetics, hair care products, manicure and pedicure 
                                     supplies, accessories, and other goods. 
 
   According to the current concept, Cosmetic stores will have from 40 to 70 
sq. m of selling space. By the end of 2020, the Company may expand its pilot 
  with several more stores and increase the total number to seven outlets in 
Moscow and the regions. Magnit Cosmetic mini format stores will be opened in 
those locations where it is impossible to open a classic Magnit Cosmetic and 
where the selling space of convenience stores allows it, as long as there is 
                          no cannibalization with existing drogerie outlets. 
 
 As of now, Magnit Cosmetic is the most dynamic and successful format of the 
  Company that shows positive LFL. The format's share in Magnit retail sales 
  is constantly growing and stood at 9.4% in 3Q 2020. Driven by the increase 
    in selling space and LFL sales growth, sales grew 21.8% representing the 
strongest performance among all Magnit's store formats. Magnit Cosmetic mini 
format pilots will allow the Company to assess the demand for a new customer 
     proposition, increase the number of customer touchpoints, and boost its 
                                                                      sales. 
 
      "We are currently working on various expanding options of our customer 
     proposition. Having analysed the best experience of Magnit Cosmetic, we 
  apply it to the pilot of Magnit Cosmetic stores. We will see how customers 
 like the mini drogerie format and based on the results, will be able to say 
     where and how we are going to develop it," - commented Ruslan Ismailov, 
                                  Magnit Deputy CEO - Retail Chain Director. 
 
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: 
 
   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 September 30, 2020, Magnit operated 38 distribution 
   centres and 21,154 stores (14,699 convenience, 469 supermarkets and 5,986 
  drogerie stores) in 3,819 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. 
 
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.:   88450 
EQS News ID:    1150403 
 
End of Announcement EQS News Service 
 
 

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November 25, 2020 02:00 ET (07:00 GMT)