MAGNIT PJSC: Magnit's discounters show 30% LFL sales uplift

DJ MAGNIT PJSC: Magnit's discounters show 30% LFL sales uplift

MAGNIT PJSC (MGNT) 
MAGNIT PJSC: Magnit's discounters show 30% LFL sales uplift 
07-Jul-2021 / 17:05 MSK 
Dissemination of a Regulatory Announcement, transmitted by EQS Group. 
The issuer is solely responsible for the content of this announcement. 
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MAGNIT'S DISCOUNTERS SHOW 30% LFL SALES UPLIFT 
 
Krasnodar, Russia (July 07, 2021): Discounters operated by Magnit PJSC (MOEX and LSE: MGNT; the Company, Magnit), one 
of Russia's leading retailers, showed a 30% uplift in like-for-like sales versus convenience stores that previously 
occupied the premises. This was announced by Ruslan Ismailov, Magnit's Deputy CEO and Director of Retail Chain 
Management, during the Company's investor call. The increased sales performance is largely due to the uptick in 
traffic. 
Today, Magnit has 76 My Price discounters. In the last two months, the Company opened 25 pilot stores. According to 
Ismailov, by the end of the year, Magnit plans to bring the number of discounters up to 200, including 50 completely 
new stores to be built from the ground up, and will become the largest discounter store operator among the public 
federal retailers. 
At this time, the pilot format meets all of the Company's expectations. All discounters show positive EBITDA and net 
income after ramp-up. They have higher sales densities compared to convenience stores that previously occupied the 
premises and significantly lower operational expenses, primarily due to lower personnel costs-an average My Price 
discounter has 5 employees, compared to 11 people in a convenience store. Discounters also benefit from lower lease 
costs versus convenience stores, since they require less space and are more flexible in terms of location. Moreover, 
Magnit's discounters have a 30%-40% faster stock rotation versus comparable convenience stores, while requiring 40% 
less capital expenditures compared to the latter, which ensures an attractive return on investment. 
Magnit plans on continuing to develop the format and believes that it may become a substantial business segment within 
the Company's ecosystem. In the nearest future, Magnit will start using a distinct design for its new discounter 
openings, whereas existing stores mostly utilize a combination of visual elements borrowed from convenience stores. The 
Company will continue improving the format's assortment, aiming to eliminate similar SKUs within the same price tier 
and expand the range of non-food items and private labels. In addition to that, Magnit is also preparing to establish 
separate commercial and operations teams for the discounter format, which is today managed by employees responsible for 
convenience stores. 
 
« 
 
Ruslan Ismailov 
 
 
 
Magnit's Deputy CEO 
and Director of   "Over the last few years, we have seen a growing customer demand for a store format that would 
Retail Chain    offer a basic assortment of affordable products, private labels and high level of service. In our 
Management     opinion, My Price discounters are a perfect fit to capture this demand. Given the scale of our 
          business, including our own production capabilities, Magnit is best positioned to build a truly 
»          competitive format that may potentially become a substantial segment of our business. Today, we 
          work on improving the CVP and continue expanding the pilot, with the final decision on roll-out 
          coming sometime next year." 

Magnit began piloting My Price discounters in July 2020. This format is aimed at price-sensitive consumers. The stores have a total area of 150-250 square meters and carry a range of around 2,000 articles, with 65% of the assortment belonging to the lower price segments, and 20% represented by Magnit's private labels. The focus is on fast-moving consumer goods in value packs: vegetables, fruits, dry foods, dairy products, meat gastronomy, poultry, preserved foods, confections, baby food, drinks, pet food, household chemicals, etc. The discounters follow simple zoning principles and have only a basic equipment setup. This, however, does not affect the level of customer service, which remains high and meets all the requirements to a modern store.

For further information, please contact: 
 
       Dina Chistyak 
       Director for Investor Relations 
       [e-mail] 
 
       Office: [phone] x 15101 
 
       Media Inquiries          Twitter 
       [e-mail]          @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 March 31, 2021, Magnit operated 39 
       distribution centers and 21,900 stores (15,098 convenience, 471 supermarkets and 6,331 drogerie stores) 
       in 3,770 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.:  115925 
EQS News ID:  1216350 
 
End of Announcement EQS News Service 
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July 07, 2021 10:05 ET (14:05 GMT)