One of Russia's largest food retailers. Engages in the retail and distribution of consumer goods.
Public Joint Stock Company Magnit, along with its subsidiaries, is involved in the retail and distribution of consumer goods under the brands Magnit, DIXY, and Megamart. The company operates various types of retail businesses, including convenience stores, cosmetic stores, supermarkets, drogerie stores, pharmacies, and others. In addition to retail operations, Magnit is engaged in software product development, food retail and wholesale, import, rent, IT, and other activities.
As of March 31, 2022, Magnit operated 45 distribution centres and had a presence in 3,946 cities and towns across seven federal regions of Russia. The company was founded in 1994 and has its headquarters in Krasnodar, Russia.
The founder of the Magnit retail chain is Sergey Galitsky. He established JSC Tander in 1995. In 2004, Magnit underwent a reboot and adopted the convenience store format. The company discontinued its wholesale operations that distributed household chemicals and perfumes and shifted its capacity from the trade centre in Krasnodar to the distribution complex in Kropotkin.
Within six years of its establishment, Magnit grew to have 1,000 stores across the country. By 2005, the number of stores had reached 1,500, and the company surpassed Pyaterochka in total revenue. In 2010, Magnit was included in Deloitte's list of the world's top 250 retailers. The same year, the company opened its first store under the drogerie format called Magnit Cosmetic.
In 2014, Magnit became the largest Russian importer. The company equipped its stores with cashless payment terminals and introduced self-service checkouts. Additionally, construction began on its own greenhouse complex in Krasnodar Krai. In 2015, Magnit became the first Russian chain to reach the milestone of 10,000 stores and demonstrated remarkable growth rates. Analytical data indicated that every 10th ruble spent by Russian households went to Magnit.
In 2017, Magnit expanded the number of its distribution centres to 36. The company also launched its first Magnit Pharmacy and Magnit Cash&Carry stores. Operations commenced at its button mushroom production facility, which became the largest of its kind in Russia. That same year, Magnit ranked 3rd in Baker Tilly's list of Russian businesses with the highest intellectual capital. In 2018, the company opened outlets in the offices of Russian Post and became the only Russian retailer to be listed on Forbes' Global 2000, which ranks the world's largest public companies.
In 2018, Marathon Group acquired an 11.82% stake in Magnit from VTB. Later that year, Magnit announced negotiations with Marathon Group to acquire JSC SIA International Ltd, a pharmaceutical distributor. The acquisition was approved by Magnit's Board of Directors and aimed to develop the Magnit Cosmetic and Pharmacy businesses.
In 2019, Magnit started piloting post-office-based outlets in collaboration with Russian Post. The company announced a brand identity update in February, with all stores adopting the same visual style and slogan: "Let's bring families together!" Since May 2019, Marathon Group's President Alexander Vinokurov has been a member of Magnit's Board of Directors.
Magnit unveiled its 2023 Development Strategy in September 2018, aiming to increase its share of the Russian market from 6% to 15%. In May 2021, Magnit announced its planned purchase of a controlling stake in all Dixy stores for 92.4 billion rubles. However, the merger of networks was subject to restrictions by the Federal Antimonopoly Service (FAS), allowing it only in municipalities where Magnit's share didn't exceed 25%. Consequently, 142 Dixy stores were not included in the Magnet network.
In October 2021, Magnit opened the first pharmacy dark store in Krasnodar, offering an expanded range of products to meet online demand. Customers could also book purchases in various regions across Russia. Throughout 2021, Magnit began collaborating with drugstore marketplaces. In November 2021, Marathon Group increased its stake in Magnit to 29.2%, becoming the largest shareholder.
In the first half of 2022, Magnit announced a 38.2% total revenue growth and a 7.0% EBITDA margin (adjusted for the Dixy acquisition). It has also made efforts to reduce greenhouse gas emissions and waste volumes.
Magnit's mission is to be the preferred retailer in Russia, providing customers with convenient access to a wide range of quality consumer goods. To increase the prosperity of our customers by minimizing their expenditures on high-quality consumer products through the efficient allocation of our Company's resources, the continuous improvement in our use of technology, and by adequately compensating our valuable employees.
The company aims to create value for its stakeholders by delivering exceptional service, offering competitive prices, and fostering long-term relationships with customers, employees, suppliers, and the communities in which it operates. Magnit is dedicated to continuously improving its operations and embracing sustainable practices to contribute to the well-being of society.
Magnit's vision is to be a leading retail company that sets the standard for excellence in the industry. Maintain a high level of viability and competitiveness for the Company through the maintenance of life support systems at the desired level, timely and quality adjustment of the provided service to the requirements of the law changes and consumer priorities.
The company strives to be recognized for its customer-centric approach, innovative solutions, and commitment to sustainable growth. Magnit envisions a future where it remains at the forefront of the retail sector, adapting to changing market dynamics and leveraging technological advancements to enhance the shopping experience
Magnit offers a wide range of products and services to meet the diverse needs of its customers. The company operates various store formats, each catering to specific consumer preferences and requirements. Here are the key products and services provided by Magnet:
