Magnit Launches Its Own Delivery Service in Fourteen More Cities
Krasnodar, Russia (April 15, 2021): Magnit PJSC (MOEX and LSE: MGNT; the Company), one of Russia's leading retailers, announced the launch of its own express delivery service in 14 cities. Convenience stores in the cities of Ufa, Kazan, Rostov-on-Don, Samara, Yekaterinburg, Nizhny Novgorod, Voronezh, Perm, Orenburg, Saratov, Izhevsk, Yaroslavl, Tyumen, and Chelyabinsk have been connected to the service.
Customers can select the goods, place an order, and pay for it via Magnit Dostavka mobile app, available for iOS or Android. Over 5,000 products, including dry foods, fruits and vegetables, fresh and perishable goods, as well as the most popular household, care, and pet products along with many other items are available for order via the app. Prices and discounts for online ordering are identical to those in brick-and-mortar Magnit stores. The delivery is free, the minimum order is RUB 500. The order is delivered within 60 minutes.
Magnit is developing this project in partnership with Yandex.Eda service, whose experts became part of the application development team. In the future, the Company plans to gradually transfer technological and operational solutions into its own perimeter while simultaneously developing various ways of cooperation with its partner.
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Quote author
Florian Jansen
Magnit's Deputy CEO and Executive Director
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"The launch of the service in the regions is an important step in developing our own delivery service and creating an appealing omnichannel proposition. We have started with an express delivery service based on our convenience stores, since we see that it is the fastest growing segment showing the highest sales. This year, we also plan to roll out to the regions our regular delivery, which is more geared towards stock-up purchases from Magnit's large-format stores. This will allow us to satisfy all consumer needs and deliver fresh and high-quality goods to millions of customers in various cities in a way that fits them most".
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In total, Magnit currently runs seven online delivery projects, both independently and in cooperation with partners. E‑commerce services encompass 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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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.
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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.
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