KRASNODAR: Magnit PJSC opened ten My Price discounters in March. As a result, their total number increased to 33 stores as of the beginning of April, a news release said.
In early March, the Company opened discounters in Omsk and Yaroslavskaya village (Krasnodar Region). Eight more stores were opened in the last two weeks of March in the villages of Tyubuk (Chelyabinsk Region) and Yamkino (Moscow Region), as well as in Lipetsk, Kaluga, Schuchye (Kurgan Region), Suvorov (Tula Region), Bolkhov (Oryol Region), and Korenevo urban-type settlement (Kursk Region).
The total area of stores is 150-350 sq. meters. The assortment includes about 1,700 fixed items. The focus is on the products of the first price segment and private labels (more than 15% of the total assortment), a significant number of which is produced at the Company’s own facilities.
This allows Magnit to control the cost and quality of goods on the shelf. The assortment also includes fast moving consumer goods in value packs: vegetables, fruits, dry foods, dairy products, meat gastronomy, poultry, preserved foods, confectionery, baby food, drinks, pet food, household chemicals, etc.
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The discounters follow simple zoning principles and have only a basic equipment setup. This, however, does not affect the level of customer service, which remains high and meets all the requirements to a modern store.
The first three stores of the new pilot format appeared in July 2020. The format of My Price stores is closer to the classic European discounter, which offers a high-quality assortment at low prices.
The format is aimed at the customer who is not ready to sacrifice quality but strives for reasonable savings. The discounters opened at the premises previously occupied by Magnit Convenience stores show an average 20% increase in LFL sales, mainly driven by growth in LFL traffic.
The Company plans to open about 15 more My Price stores in April and several dozen new stores by the end of 2021.