MAGNIT PJSC (MGNT)
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.
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.
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