Magnit

Magnit plans an expansion in Siberia

Written by

Experts made a forecast about a boost in development of supermarket network Magnit in Siberia. This forecast is based on a launch of a new distribution warehousing center with a total square of 20 000 m2 in Novosibirsk. In future it will help “Magnit” to increase profit and a number of salepoints in Siberia.

The positive reaction of investors is explained by new logistics capacity. It will help the company to extend its presence in Siberia and to accelerate the pace of development of the supermarket network itself. This will positively influence the dynamics of the company’s profit growth.

It is to be recalled that in the end of 2013 Magnit owned only one distribution warehousing center in Siberia – in Omsk Region. It is expected that Magnit is going to start an active expansion in Siberia after creating the necessary logistic structure in Novosibirsk Region.

According to the Magnit’s plan of expansion, 1500 new salepoints will be opened in 2014, which is more than in 2013 by 291 salepoints.

www.retail.ru

Magnit Named One of Europe’s 50 Most Valuable Brands

Written by

Magnit, Russia’s largest food retailer, has been named one of the 50 most valuable brands in Europe.

The brand is worth $272 million, placing it 44th on the list just after The Body Shop and before such retailers as department store Debenhams and mobile phone retailer Carphone Warehouse, according to the report Best Retail Brands 2014 by brand consultancy Interbrand.

Magnit’s earnings rose 26 percent in 2013 to $18.2 billion with a net profit of $1.1 billion. By comparison, the company’s primary competitor X5 Retail Group, owner of supermarket chains Pyatyorochka, Perekryostok and Carousel, saw earnings of $16.8 billion and a net profit of $345 million.

Magnit had more than 8,000 stores across the country in late 2013, while X5 had about 4,500 locations.

Despite its strong position in the market, Magnit cut its full-year 2014 sales growth forecast from 25 percent down to between 22 and 24 percent to account for reduced consumer confidence stemming from Russia’s weak economic growth. The IMF has predicted that Russia’s gross domestic product will grow by a mere 1.4 percent in 2014, revised from an earlier forecast of 2 percent.

www.themoscowtimes.com

X5 revenue growth accelerates amid Russian retail slowdown

Written by

X5 Retail Group NV posted the strongest quarterly sales growth in two years as it closed the gap on competitors including OAO Magnit and O’Key Group SA.

Fourth-quarter sales rose 12 percent to 150 billion rubles ($4.4 billion), benefiting from an improved product assortment and promotional activity, the Moscow-based grocer said today in a statement. That compares with growth of 6.6 percent in the previous three months.

The increase in sales beat the 8 percent estimate of VTB Capital, sending the shares up as much as 7.1 percent.

“This is surprising given that Magnit, O’Key and M.video reported a slowdown in fourth-quarter sales, citing weakening consumer spending,” VTB Capital analyst Ivan Kushch said.

While X5’s accelerating sales bucked the trend, the overall growth rate is still the weakest of its main rivals, according to Kushch. “We need to see if the company’s turnaround is sustainable,” he said. “Fourth-quarter growth was largely driven by promotional price declines, which may have hurt profits.”

Magnit, Russia’s biggest retailer, said this month that revenue rose almost 23 percent from a year earlier in December, less than November’s 29 percent growth. O’Key also reported weaker growth, while electronics retailer M.video said same-store sales declined in the fourth quarter.

X5 Retail shares rose 4.8 percent to $18.50 at 8:24 a.m. in London, where the stock has its main listing.

www.freshplaza.com

Magnit establishes subsidiary in Altay Territory

Written by

Magnit, the largest Russian retailer in terms of revenues, has registered an affiliate office for Tander (the chain’s operator) in Barnaul, with a plan to enter the Altay Territory market. The first of the company’s stores in the region is expected to open in September 2014.

The company had previously announced its intention to build a logistics centre in the neighbouring Novosibirsk Province, to cover the needs of nearby regions, including the Altay Territory. The construction period is 2013-2014. The amount invested in the project will be RUB 1.5bn (€33m).

Overall, at the end of 2013 Magnit was operating 7,407 grocery stores in Russia. In addition, the retail giant had 686 cosmetics stores (the Magnit Kosmetik brand).

www.ceeretail.com

Magnit reported slower sales growth

Written by

OAO Magnit (MGNT), Russia’s largest retailer, reported slower sales growth in December as consumer-spending weakened, sending the shares down the most in about 18 months.

Revenue rose almost 23 percent from a year earlier to 63.6 billion rubles ($1.9 billion), less than November’s 29 percent growth, Krasnodar, Russia-based Magnit said in a statement today. Convenience stores led the slowdown as consumers switched to hypermarkets and open markets for New Year shopping.

Magnit fell as much as 6 percent in London trading, the steepest drop since July 6, 2012. The stock was down 4.9 percent to $60.35 at 8:30 a.m. in the U.K. capital.

Magnit’s slowdown may cause investors to revise growth prospects for the entire Russian retail sector, said Natalia Kolupaeva, an analyst at ZAO Raiffeisenbank in Moscow.

Russian gross domestic product grew 1.2 percent in the third quarter, missing estimates. Economic growth has slowed every quarter since President Vladimir Putin won a third Kremlin term in March 2012. Russian retail sales grew 4.5 percent in November, according to Federal Statistics Service.

www.bloomberg.com

Magnit sets up transport arm in Hungary

Written by

Russia’s biggest food retailer, Magnit, will set up a transport company in eastern Hungary creating around 1,500 jobs, Hungarian foreign affairs state secretary Peter Szijjarto was quoted as saying on Friday.

National news agency MTI reported Szijjarto as saying that Magnit’s road haulage arm will have a fleet of 1,000 trucks, which will transport foodstuff from European Union member states including Hungary to the retailer’s shops in Russia.

Magnit, earlier this year, overtook rival X5 as Russia’s No.1 grocery chain by revenue.

www.freshplaza.com

November sales rose by 28.7% for Russian retailer Magnit

Written by

Russia’s biggest food retailer Magnit said on Tuesday its sales rose by 28.7 percent in November, year-on-year, to 50.2 billion roubles ($1.5 billion) after a rise of 27 percent in the previous month.

Magnit, which this year overtook rival X5 as Russia’s No.1 grocery chain by revenue, said the November result brought sales for the first 11 months of the year to 516 billion roubles, up 30 percent on the year.

The company opened 181 stores last month, bringing its total to 7,920. Fast expansion will help it grow revenues by 28-29 percent this year, while next year’s growth is likely to slow to 25-27 percent, the company has said.

www.freshplaza.com

Magnit opens new distribution centre

Written by

Magnit, Russia’s largest retailer by sales, has said that it will open a new distribution centre in Yaroslavl.

Located to the north-east of Moscow, Yaroslavl is a transportation hub connected to the rest of Russia via national and regional roads, railways and waterways.

Magnit’s new distribution facility is about 58,904 square metres in size. The company said that the new facility would “improve the quality of service in central regions”.

Magnit has focused on expanding its sales in Russia through a programme of aggressive store openings. In the first nine months of this year, to the end of September, Magnit increased its selling space by over 25%, opening 762 stores throughout Russia. As a result of this strategy, the company expects full-year sales to climb by 28-29%.

The group operates 20 distribution centres with a total capacity of around 542,031 square metres.

www.freshplaza.com

Magnit grows

Written by

FMCG-retailer “Magnit” has published results of its financial activity within October and 10 months in 2013. In October revenues of the retailer have increased by 26.73% — up to 48.6 billion rubles. During this period the company has earned 465.7 billion rubles. It is by 30.19% more than during the same period last year.
During October, 2013 the company opened 93 new stores. The overall amount of stores in the chain equals 7,739.
Following the results of 2013 “Magnit” plans to increase its revenues by 28-29%.

www.retailer.ru