Russian retailer Magnit reports slower sales growth in May

MOSCOW, June 9 (Reuters) - Magnit, Russia's biggest food retailer, has reported a sharp drop in revenue growth last month, adding to the evidence that the budget chains are not immune to the national squeeze on consumer spending.

Russian retailers are facing pressures on sales and profit margins as consumers tighten their belts following a slide in the value of the rouble and spike in inflation in the wake of weaker oil prices and the impact of Western economic sanctions.

Magnit said on Thursday its retail sales in May rose 9.6 percent on a year ago to 87.7 billion roubles ($1.4 billion), which compared with an annualised increase of 15 percent in both March and April.

Sales at its biggest, low-price convenience store format rose 9.6 percent, which compared with a 14 percent growth rate in April.

Sales at its hypermarkets dropped 6.4 percent, whereas sales in April were flat. Magnit opened no hypermarkets last month but added a further 99 convenience stores and 105 cosmetics shops.

London-listed shares in Magnit were down 7 percent at $33.50 by 1020 GMT, underperforming other UK-traded Russian stocks.

The shares are down 26 percent so far this year, pressured by the slowdown in revenue growth and increased competition.

($1 = 63.9895 roubles) (Reporting by Maria Kiselyova; Editing by Greg Mahlich)