UK markets closed
  • FTSE 100

    7,129.71
    +53.54 (+0.76%)
     
  • FTSE 250

    22,775.28
    +283.92 (+1.26%)
     
  • AIM

    1,262.60
    +9.91 (+0.79%)
     
  • GBP/EUR

    1.1495
    -0.0015 (-0.13%)
     
  • GBP/USD

    1.3990
    +0.0098 (+0.70%)
     
  • BTC-GBP

    41,505.66
    -545.00 (-1.30%)
     
  • CMC Crypto 200

    1,480.07
    +44.28 (+3.08%)
     
  • S&P 500

    4,232.60
    +30.98 (+0.74%)
     
  • DOW

    34,777.76
    +229.23 (+0.66%)
     
  • CRUDE OIL

    64.82
    +0.11 (+0.17%)
     
  • GOLD FUTURES

    1,832.00
    +16.30 (+0.90%)
     
  • NIKKEI 225

    29,357.82
    +26.45 (+0.09%)
     
  • HANG SENG

    28,610.65
    -26.81 (-0.09%)
     
  • DAX

    15,399.65
    +202.91 (+1.34%)
     
  • CAC 40

    6,385.51
    +28.42 (+0.45%)
     

Magnit to Test New Format of DIY Stores

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·4-min read
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

MAGNIT PJSC (MGNT)
23-Apr-2021 / 12:00 MSK
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.

 

 

MAGNIT TO TEST NEW FORMAT OF DIY STORES

 

Krasnodar, Russia (April 23, 2021): Magnit PJSC (MOEX and LSE: MGNT; the Company), one of Russia's leading retailers, has opened its first Magnit Master, a "hardware convenience" store offering a wide range of manufactured goods.

Magnit Master is a format of small stores offering household and home improvement goods (so-called DIY, or "do-it-yourself", stores). Such stores operate with a selling space of 50-150 sq. m. The store sign is done in blue and yellow colors and has a claw-hammer as the logo.

The first store opened in Krasnodar at 159 Sadovaya street. The second Magnit Master store will open soon, also in Krasnodar. The Company plans to look at the first results of the new format and then decide on its future.

Magnit Master is aimed at those customers who are renovating and improving their homes themselves and need to quickly buy some necessary items close by. The core assortment includes manufactured DIY goods and housewares, tableware, other household items, as well as household chemicals, cosmetics, and seasonal goods. Overall, the store offers more than 3,000 SKUs, with DIY items accounting for around 1,300 SKUs. The Company expects the average ticket in Magnit Master to be higher than in its food formats.

As part of its plan to develop Magnit Master further, the Company plans to offer additional services to its customers. For example, the stores might be outfitted with kiosks to order items not available in the store-oversized DIY articles and other similar products.

«

Ruslan Ismailov

Magnit's Deputy CEO and Director of Retail Chain Management

»

 

"Magnit has historically been strong in the smaller formats and knows how to find advantageous locations and manage an expansive network of stores across the entire country, including places not yet tapped by large DIY retailers. This market is pretty consolidated: open hardware markets are a thing of the past, while large players mostly operate in large cities with populations of over a million and work with formats that occupy more than 1,000 sq. m of space. However, today, there are still no large modern players in the small format segment. Most such outlets are small standalone shops, what we in Russia call '1000 small wares' stores, etc. We think that this may be a very lucrative niche for Magnit."

 

«

Jan Dunning

Magnit's President and CEO

»

 

 

"Magnit's strategy until the year 2025 involves looking for and testing new high-potential niche markets. Besides the supermarkets, superstores, convenience stores, cosmetics stores, and pharmacies, we started developing our compact Magnit City stores, discounters, and kiosks. Our new Magnit Master format may actually synergize quite well with our core business, so it's only logical for us to add it to the Magnit platform that serves as the basis for managing various formats and developing our chain while maintaining a proper level of return on investments."

 

 

 

For further information, please contact:

 

Dmitry Kovalenko

Director for Investor Relations 
dmitry_kovalenko@magnit.ru

Office: +7 (861) 210 4880

 

Dina Chistyak

Director for Investor Relations 
dina_chistyak@magnit.ru

Office: +7 (861) 210 9810 x 15101

 

Media Inquiries                    Twitter

press@magnit.ru                    @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 December 31, 2020, Magnit operated 38 distribution centres and 21,564 stores (14,911 convenience, 470 supermarkets and 6,183 drogerie stores) in 3,752 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.:

100630

EQS News ID:

1187962


 

End of Announcement

EQS News Service

show this
show this