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MAGNIT PJSC (MGNT)
Magnit and Wildberries expand partnership
10-Dec-2021 / 10:00 MSK
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
MAGNIT AND WILDBERRIES EXPAND PARTNERSHIP
Krasnodar, Russia (December 10, 2021): Magnit PJSC (MOEX and LSE: MGNT; the Company, Magnit), one of Russia's leading retailers, and Wildberries, the largest[1] online retailer in Russia, are working on expanding their partnership. The two companies rolled out express delivery of goods from convenience stores to new regions and launched a pickup service for alcohol.
In July 2021 the companies launched a joint pilot for express delivery of goods from convenience stores in Krasnodar. Now, they have rolled it out to four more cities - Moscow, Saint Petersburg, Novosibirsk, and Samara, enabling customers living there to place orders via Wildberries' app or website.
Magnit's assortment is made available in a separate "shop-in-shop" section integrated into Wildberries' app and website. Customers can choose from more than 4,000 most popular Magnit products - dairy, meat, ready-to-cook products, dry foods, packaged fruits and vegetables, juices, bottled water, tea, coffee, as well as home, personal, and pet care articles and many other things. Moscow residents also have access to a wider assortment available in Magnit's dark stores.
The cost of delivery is 99 rubles, and it is free for orders of 499 rubles and more. Orders are delivered within 90 minutes.
In addition to that, Magnit and Wildberries have launched a pilot alcohol pickup service in Krasnodar, which allows choosing and ordering the desired products via Wildberries' website, where Magnit's "shop-in-shop" section offers a range of around 1,600 alcohol items. Customers can collect their order just one hour after the reservation is made. The order must be paid for at a store checkout desk after the cashier confirms the customer's age.
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Andrey Lukashevich
Magnit's Director for
E-Commerce
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"We're happy with the results of the Krasnodar pilot, so we've decided to expand our partnership with the largest Russian e-commerce retailer. As of today, we have around 70 convenience stores in 5 different regions linked to Wildberries, and we plan to roll out to still more cities in 2022. In addition to that, the alcohol pickup service represents another important step in our partnership. We expect this service to be popular with our consumers."
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Wildberries' Press Service
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"We continue developing Wildberries as a convenient platform for small and large businesses alike and offering Russian entrepreneurs new opportunities to drive their sales and reach wider audiences. For more than half a year now, small businesses and farmers in Moscow and Saint Petersburg have been able to deliver their products to customers through collaboration with Wildberries. By partnering with such a large chain as Magnit, we will be able to expand our offering of affordable products."
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Note to editors
"Magnit" is one of Russia's leading retailers. Founded in 1994, the company is headquartered in the southern Russian city of Krasnodar. As of September 30, 2021, Magnit operated 45 distribution centers and 25,315 stores in 3,840 cities and towns throughout 7 federal regions of the Russian Federation.
In accordance with the unaudited IFRS 16 management accounts results for 9M 2021, Magnit had revenues of RUB 1,311.5 billion and an EBITDA of RUB 151.4 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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About Wildberries[2]
Wildberries is the largest online retailer in Russia, first entering the market 17 years ago. The company operates in 18 countries: Russia, United States, Poland, Slovakia, Belarus, Kazakhstan, and others. In 2020, Wildberries grew its turnover by 96% to RUB 437.2 billion. Wildberries receives over 3 million orders every day, and its audience exceeds 92 million people.
As of November 1, 2021, more than 450,000 Russian entrepreneurs sell their products via Wildberries. Wildberries's assortment spans 18 million SKUs from 210,000 Russian and foreign brands: apparel and footwear, accessories, beauty products, children's products, consumer appliances and electronics, home care goods, jewelry, groceries, books, digital products, and many others. Around 50% of products are made in Russia.
The company ranks 1st in Forbes' rating of 10 largest sellers of the Russian segment of the Internet. For the last five years, Wildberries has been the largest online store in Russia in volume of online sales according to Data Insight, an analytics agency. Wildberries ranks among the top ten most visited Russian websites according to SimilarWeb.
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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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[1] According to 2020 assessment by Data Insight
[2] According to Wildberries
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