Our stores
| Format | A convenient and affordable store for everyday shopping. Routine shopping, food for tonight/now, minor stock-up |
| Location | Bedroom communities and business areas |
| Store space | Total 476 sq. m. Retail 331 sq. m. |
| Share of turnover | Food items 88% Non-food items 12% |
| Ownership structure | Company-owned 19% Rented 81% |
| Operating indicators | |
| Average ticket | RUB 249 |
| Number of customers | 274,826 customers per 1 store per year |
| Traffic | 2.4 tickets/sq. m. per day |
| Sales density | RUB 224,640 revenue/sq. m./year |
| LFL 2018 vs. 2017 | |
| Average ticket | 0.0% |
| Traffic | -2.8% |
| Revenue | -2.8% |
| Store openings | |
| Payback period | 3 years if rented 4-6 years if owned |
| Cost of new store | RUB 26,000 per sq. m. of total space |
| Cost of redesign | RUB 17,000 per sq. m. of total space |
| Time required to reach maturity | 14 months |
| Format | Major shopping, special occasion, routine shopping, food for tonight. Comfortable and affordable store for everyday and major shopping |
| Location | Bedroom communities, business areas, and shopping centers |
| Store space | Total 4,306 sq. m. Retail 2,017 sq. m. |
| Share of turnover | Food items 81% Non-food items 19% |
| Ownership structure | Company-owned 55% Rented 45% |
| Operating indicators | |
| Average ticket | RUB 525 |
| Number of customers | 846,404 customers per 1 store per year |
| Traffic | 1.2 tickets/sq. m. per day |
| Sales density | RUB 223,046 revenue/sq. m./year |
| LFL 2018 vs. 2017 | |
| Average ticket | 2.0% |
| Traffic | -1.3% |
| Revenue | -3.3% |
| Store openings | |
| Payback period | 6-9 years |
| Cost of new store | RUB 45,000 per sq. m. of total space |
| Cost of redesign | RUB 39,000 per sq. m. of total space |
| Time required to reach maturity | 14 months |
In the first half of 2019 Magnit developed a new customer value proposition for the supermarket format and presented it to the Board of Directors. The new model will be tested in a number of pilot projects to analyze the results and make a comparison with set profitability criteria prior to continuing the comprehensive development of the format.
| Format | Within walking distance to buy beauty and health products |
| Location | Bedroom communities and business areas |
| Store space | Total 289 sq. m. Retail 230 sq. m. |
| Share of turnover | Non-food items 100% |
| Ownership structure | Company-owned 12% Rented 88% |
| Operating indicators | |
| Average ticket | RUB 322 |
| Number of customers | 63,170 customers per 1 store per year |
| Traffic | 0.8 tickets/sq. m. per day |
| Sales density | RUB 99,069 revenue/sq. m./year |
| LFL 2018 vs. 2017 | |
| Average ticket | 4.1% |
| Traffic | -1.1% |
| Revenue | 3.0% |
| Store openings | |
| Payback period | 3 years if rented 4-6 years if owned |
| Cost of new store | RUB 18,000 per sq. m. of total space |
| Cost of redesign | RUB 15,000 per sq. m. of total space |
| Time required to reach maturity | 10 months |
We believe the pharmacy retail market in Russia is one of the most interesting markets for expansion. This segment is more than substantial in terms of size at over RUB 1 trillion. It accounts for roughly 10% of the food retail market and has shown steady growth in recent years. However, the pharmacy market has not yet been consolidated. Magnit is definitely capable of occupying a significant share of the market alongside the largest competitors in a short time.
Pharmacies and grocery stores are mutual drivers of consumer traffic, which, in turn, provides a multiplier economic effect. Magnit needs to have its own logistics platform for the large-scale development of the pharmacy chain on the core of its stores. The purchase of the SIA Group in November 2018 was a solution to this challenge. The SIA Group is one of the largest distributors of drugs and medical products.
In terms of regional coverage, the variety of the product range, and the availability of logistical capacity, the SIA Group’s capabilities most closely meet the Company’s needs.
This transaction will enable Magnit to enhance its competencies as quickly as possible and enter the pharmaceutical retail market with a significant competitive advantage. It is also a platform for the further development of our highly profitable Magnit Cosmetic format.
The initial stage of the SIA Group’s integration into Magnit was completed in the first quarter of 2019. Under the approved plan, this logistics platform will be used to serve roughly 2,000 drogerie stores, which makes up almost half the total base of Magnit Cosmetic stores. In addition, a project was launched based on this platform to open 2,000 pharmacies in 2019.