«Magnit» retail chain

Transcription

1 «Magnit» retail chain

2 About us Company mission: We work hard to increase the prosperity of our customers by minimising their expenses on quality consumer goods through effecient use of the company s resources, improvement of the technology and adequate compensation for our employees. Company objective: To secure the company s high viability and competitiveness by maintaining life support systems at the desired level, making timely and quality adjustments of provided services according to the requirements of law changes and the consumers priorities. Our values: RESPONSIBILITY DEVELOPMENT COOPERATION PROFESSIONALISM

3 «Magnit» retail chain Leading food retailer in Russia by number of stores, selling space, sales, growth rate and efficiency. First Magnit convenience store was opened in 1998 in Krasnodar. 15 years later (in 2013) Magnit retail chain has become the largest food retailer in Russia. Magnit is now the absolute national market leader. Magnit stores are opened in big cities as well as in small towns. Approximately two-thirds of the stores are operating in towns with population less than 500,000 people. The largest food importer on the territory of the Russian Federation. To reduce prices our company directly imports huge volumes of fresh fruits and vegetables, meat and milk products, canned food, grocery and confectionery, frozen fish and seafood, as well as non-food products. Reliable and stable partner for national producers and foreign companies. The largest private employer in Russia. As of March 31, localities stores 34 distribution centers vehicles over employees

4 «Magnit» in figures as of Number of the stores Convenience stores Hypermarkets Magnit Family Cosmetics stores Net revenue, mln. Rub Total selling space, thousand sq.m Number of tickets, mln % Net income, mln. Rub Net income margin, %

5 Multiformat business model Convenience stores The first convenience store was opened in Located within walking distance of residential buildings, near to main walking and transport flows Quality assortment of consumer staples at the lowest prices Ground floor stores or freestanding Sales mix: food non-food Average total space: 456 sq. m. Average selling space: 326 sq. m. Average ticket: 89 % 11 % As of March 31,

6 Multiformat business model Hypermarkets The first hypermarket was opened in Located within the city near to transport flows Less aggressive pricing than that of the average market Parking lot for cars Р Wide assortment including large group of manufactured goods Own production facility, producing ready meals and ready-to-cook products Sales mix: food, non-food 80 % 20 % Large selling space. Average total space: sq. m. Average selling space: sq. m. Average ticket: As of March 31, 2016

7 Multiformat business model «Magnit Family» The new format Magnit Family was launched in Located primarily in the leased premises of the shopping centers Expanded fresh product zone Own production facility (ready meal) Sales mix: food non-food Average total space: sq. m. Average selling space: sq. m. Average ticket: 84 % 16% As of March 31, 2016

8 Multiformat business model Cosmetics stores (Drogerie) The first cosmetics store was opened in Located within walking distance of residential buildings, near to main walking and transport flows Ground floor stores or above the convenience stores Wide assortment of attractively priced hygiene and household products, cosmetics, perfumery, homeware and merchandise for kids Sales mix: non-food 100 % Average total space: 298 sq. m. Average selling space: 229 sq. m. Average ticket: As of March 31, 2016

9 Geographical coverage (as of March 31, 2016) CFD NWFD Convenience stores Hypermarkets Magnit Family Cosmetics stores Distribution Centers SFD NCFD cities and towns 7 federal districts VFD UFD SibFD

10 Development strategy Further expansion of the chain by increasing the density of coverage of the key markets as well as organic expansion in the least developed regions of Russia. Development of the multi-format business-model through continuing aggressive opening of convenience stores, hypermarkets, Magnit Family and drogerie stores. Building of the high level loyalty of the key audience to the brand. Implementation of additional measures to minimize costs and improve profitability. In 2016 the company is planning to open: Convenience stores 80 Hypermarkets and Magnit Family Cosmetics stores