Magnit’s strategic principles and vision
Magnit’s strategic principles and vision
The retail market in Russia has evolved over the past five years. As market growth rates have slowed, competition has picked up: the top 5 national players already control 29% of the market, and their share is only going to get bigger. Our consumers are becoming increasingly demanding — such parameters as product freshness, the variety of assortment, a store’s cleanliness and convenience, and the staff’s friendliness and appearance have become critical to them. Having said that, they still remain sensitive to price and are not willing to overpay for quality.
Magnit must adjust to the changing retail market. In an effort to meet the new reality and strengthen our leadership position, we have launched a strategic program of the company’s transformation. The program focuses on our customers and meeting their needs, maximizing the strengths of our business model, and creating new platforms for growth. We have set the goal of offering a new standard of affordable consumption and a positive consumer experience for all Russian families. We will meet the most important needs of customers under a single umbrella brand. We are creating a network of Magnit stores for all Russian families.
The transformation program was launched in the second half of 2018 and has rapidly produced results: we are proud that the Company had positive comparable sales in the fourth quarter of 2018 for the first time in two years.
Based on the market context and our strategic principles, we have formulated the following vision for Magnit: