MAGNIT PJSC (MGNT)
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.
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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.
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.
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