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MAGNIT PJSC (MGNT)

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Wednesday 23 June, 2021

MAGNIT PJSC

Magnit launches its own delivery service from supermarkets in regions

MAGNIT PJSC (MGNT)
Magnit launches its own delivery service from supermarkets in regions

23-Jun-2021 / 11:00 MSK
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.


 

 

 

 

magnit launches its own delivery service from supermarkets in regions

 

 

Krasnodar, June 23, 2021: Magnit PJSC (MOEX and LSE: MGNT; the Company, Magnit), one of Russia's leading retailers, announced the launch of its own large format delivery service - Magnit Family supermarkets and Magnit Extra superstores - in the regions. Today, this delivery service is available in seven cities, and five more cities will be added to the service until the end of the month.

Stores in St. Petersburg, Samara, Togliatti, Izhevsk, Omsk and Ufa have been connected to the delivery service, which was tested earlier in Krasnodar. Outlets in Orenburg, Tyumen, Yaroslavl, Ulyanovsk and Voronezh are to be connected until the end of July.

More than 15 thousand goods are available for order in the most popular categories allowed for online sale: vegetables, fruit, dairy and meat products, tea, coffee, dry foods, juices and bottled water, care products, household chemicals, etc. Prices and discounts in the online service are identical to those in brick-and-mortar supermarkets of the chain. Customers can choose products, place an order and pay for it via Magnit Dostavka mobile app for iOS and Android. The goods will be delivered within 3 hours from receipt of the order. The delivery is free, the minimum order is RUB 1,000.

Magnit is developing this project in partnership with Yandex.Eda service, whose experts became part of the application development team. In the future, the retailer plans to consistently transfer technological and operational solutions to its own perimeter, while simultaneously developing various forms of cooperation with the partner.

«

Florian Jansen

 

Deputy CEO and Executive Director of Magnit

»

 

 

"We continue to expand our online offer for customers, adding delivery from supermarkets and superstores to the previously launched express delivery from Magnit Convenience and Cosmetic stores. The majority of customers that prefer shopping in supermarkets is represented by families with children who are also more demanding in regards to the assortment.  Delivery from supermarkets and superstores will significantly save time and effort when stocking up with large volumes of goods. We plan to strengthen our positions in the regions, specifically by connecting about 20 cities to the delivery service from large formats this year."

 

In total, Magnit currently runs seven online delivery projects, both independently and in cooperation with partners. At the end of the first quarter of 2021, e-commerce services encompassed over 1,300 of the Company's stores in 58 regions and 94 cities. Around 60% of revenue from online projects is generated outside Moscow and St. Petersburg. Magnit delivers up to 9,500 orders a day. The average ticket of the Company's own delivery service is up to RUB 1,400, which is almost 3,8 times higher than in the convenience stores (RUB 372 in 1Q 2021). During 2021, the Company plans to expand online delivery adding at least 1,500 convenience, drogerie and large-format stores in more than 50 regions across Russia.

 

 

 

For further information, please contact:

 

Dina Chistyak

Director for Investor Relations 
dina_chisty[email protected]

Office: +7 (861) 210 9810 x 15101

 

Media Inquiries  Twitter

[email protected]  @MagnitIR

 

 

 

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 March 31, 2021, Magnit operated 39 distribution centers and 21,900 stores (15,098 convenience, 471 supermarkets and 6,331 drogerie stores) in 3,770 cities and towns throughout 7 federal regions of the Russian Federation.

In accordance with the audited IFRS 16 results for FY 2020, Magnit had revenues of RUB 1,553.8 billion and an EBITDA of RUB 178.2 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 or may contain forward-looking statements that may or may not prove accurate. For example, statements regarding expected sales growth rate and/or 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.: 112923
EQS News ID: 1210902

 
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