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MAGNIT PJSC (MGNT)
Magnit and Delivery Club launch thirty-minute express grocery delivery
15-Dec-2021 / 11:00 MSK
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
MAGNIT AND DELIVERY CLUB LAUNCH THIRTY-MINUTE EXPRESS GROCERY DELIVERY
Krasnodar, Russia (December 15, 2021): Magnit PJSC (MOEX and LSE: MGNT; the Company, Magnit), one of Russia's leading retailers, announces the joint launch of 30-minute express grocery delivery with Delivery Club. By the end of 2021, the service will become available in 9 cities and will encompass more than 1 000 stores of the Company. Now the service of grocery delivery in half an hour from Magnit stores is available to residents of the cities of Tyumen, Kursk, Omsk, Bryansk and Tambov. In the near future, the service will be rolled out to Moscow, Voronezh, Samara and Smolensk, while next year the partners expect to further expand the delivery footprint. Delivery Club app users have access to an assortment of about 5,000 items from Magnit stores.
The companies tested the 30-minute delivery service in Tyumen. The pilot showed strong results, so it was decided to scale the service. There is no order minimum, the delivery cost now is 99 rubles, and if you place an order for a certain amount (499 rubles in the regions and 699 rubles in Moscow), delivery will be free. If the order is slightly delayed or delivered in more than 30 minutes, Delivery Club will give you a promotional code for the next purchase. All orders are delivered contactless: the delivery agent wearing a protective mask and gloves puts the packages down and leaves at a safe distance while the customer picks up the order.
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Andrey Lukashevich
Board Member, E-Com Director at Magnit
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"Together with our partners we are launching the 30-minute delivery service in the very high season, on the New Year's Eve, when it's extremely important for users to quickly get what they need. We see that express delivery is a segment that is now actively growing and evolving, and we continue to strengthen our leadership positions in the regions in terms of offering such services to customers".
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Dmitry Benzoruk
Head of E-Grocery at Delivery Club
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"We see how popular express grocery delivery is becoming, as users increasingly place orders to cater for a specific need or occasion. We are glad that we are able to effectively combine the strengths of Delivery Club and Magnit, namely reliable 30-minute delivery and a wide assortment at affordable prices. I am sure that our project will make the service more widespread and will motivate more customers to order products online".
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Previously, Magnit and Delivery Club launched express delivery within from 30 to 45 minutes from more than 2,500 stores of the Company in over 90 cities of Russia. The most popular goods among customers are basic foodstuffs, namely vegetables, fruits, as well as fermented dairy products, meat and bread.
To date, the total of orders within Magnit's own and partner e-commerce services reaches 70 thousand per day. GMV of these services as of the last week of October 2021 exceeded 1% of the total revenue of Magnit.
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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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Delivery Club description
According to Delivery Club it is the leader in the ready-to-eat food delivery market and one of the leaders in the grocery delivery market in Russia. The service fulfills over 8 million orders every month. At the end of 2020, the service's revenue amounted to 10 billion rubles, which is 2.3 times more than in the same period in 2019. As of three quarters of 2021, revenue has already exceeded the result of the entire last year and amounted to 10.8 billion rubles. More than 45 thousand partners in more than 300 cities of the country are connected to Delivery Club. In more than 150 cities, Delivery Club users can order not only ready-made meals from restaurants, but also the delivery of food and FMCG. Delivery Club develops takeaway food ordering, table reservations, delivery of medicines, pet supplies, as well as non-cash tips. In 2021, the service launched its own Delivery PRO subscription. Since 2019, Delivery Club has been part of the O2O (online-to-offline) platform in the food and transport markets, which is being created by VK and Sber.
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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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