«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, timely and quality adjustment 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 013) Magnit retail chain has become the largest food retailer in Russia. Magnit is now the absolute national market leader. The chain comprises 9 00 stores in 019 localities of Russia. The majority of the stores are located in Southern, North-Caucasian, Central and Volga Federal Districts. Still the geography covers North-West, Urals and Siberian Federal Districts. As well 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*. Distribution network system consists of 5 distribution centers, automated stock replenishment system and vehicle fleet of around vehicles*. The largest food importer on the territory of the Russian Federation. To reduce prices our company is delivering huge volumes of fresh fruits and vegetables, meat and milk products, canned food, grocery and confectionery, frozen fish and seafood as well as nonfood products. Reliable and stable partner for national producers and foreign companies. One of the largest employers in Russia. Total headcount of the company is about people**. * As of June 30, 014 ** As of September 30, 014

4 «Magnit» in figures H 014 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 Location 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: 89 % food, 11 % non-food Average total space: 458 sq. m. Average selling space: 30 sq. m. Average ticket: 17.1 rubles. Hypermarkets The first hypermarket was opened in 007. Location within the city near to transport flows Large selling space Parking lot for cars Wide assortment including large group of manufactured goods Less aggressive pricing than that of the average market Sales mix: 80 % food, 0 % non-food Own production facility, producing ready meals and ready-to-cook products Average total space: sq. m. Average selling space: 985 sq. m. Average ticket: rubles. «Magnit Family» The new format Magnit Family was launched in 01. Location primarily in the leased premises of the shopping centers Expanded fresh zone Own production facility (ready meal) Sales mix: 85 % food, 15 % non-food Main technologies and pricing of the hypermarket format Average total space: 97 sq. m. Average selling space: sq. m. Average ticket: rubles. Cosmetics stores (Drogerie) The first cosmetics store was opened in 010. Location within walking distance of residential buildings, near to main walking and transport flows Ground floor stores or above the convenience stores Sales of non-food consumer staples Wide assortment of attractively priced hygiene and household products, cosmetics, perfumery, homeware and merchandise for kids Sales mix: non-food only Average total space: 314 sq. m. Average selling space: 36 sq. m. Average ticket: 43.3 rubles.

6 Geographical coverage (as of June 30, 014) South Center North Caucasus North West cities and towns 7 federal districts Volga Urals Siberia Hypermarkets Convenience stores Cosmetics stores Magnit Family Distribution Centers

7 Development strategy Further organic growth of store operations: continued roll-out of established business model in existing markets and selective expansion into new geographic areas. Ongoing development of logistics and investments in IT-system for achieving the most efficient stock replenishment system and transport flows. Roll-out of multi-format business model to meet the customers different needs and revenue levels. Direct import roll-out: increase of share of fresh vegetables and fruits through direct deliveries for cost savings. Plan to add in 014: 1,100 convenience stores, 80 hypermarkets and Magnit Family stores, cosmetics stores as well as 6 distribution centers.