Magnit to Roll Out Bakery Project in Its Convenience Stores

Krasnodar, Russia (January 25, 2022): Magnit PJSC (MOEX and LSE: MGNT; the Company, Magnit), one of Russia's leading retailers, announces the expansion of the assortment of its convenience stores with fresh bakery products of in-store production in the first quarter of 2022. At the first stage, bakeries will appear in 100 stores in different regions, i.e. Moscow, St. Petersburg, Central Russia, the South and Siberia, and it is planned to multiply the number of stores by the end of 2022. This will allow to increase the average ticket and store traffic. Last year, Magnit has already launched the pilot project in 21 stores in Moscow, St. Petersburg, Voronezh, Krasnodar, and other cities. Sales of bakery products in these stores have increased by 2-3 times and the traffic increased by 6-7%.

In 100 Magnit Convenience stores, customers will be offered croissants, hot dogs, puffs, fresh bread, and other pastry, including combo sets. Some stores will also offer various kinds of takeaway coffee. Magnit will differentiate its assortment of bakery products - which amounts to 22-44 items - depending on the store location. The assortment will also depend on the customer, pedestrian and car traffic, and the competitive environment.

An up-to-date equipment will be installed in stores, and professional technologists will make bread and bakery products. Specialists will choose individual production time for each store. For example, if there are offices and business centers nearby, then bakery products will be made in the morning, so that employees have time to have a bite. If the area is residential, then bread and other items will be baked in the afternoon towards evening. The quality will be controlled via the telemetry monitoring, i.e. all the equipment will be connected to the system allowing remote monitoring of processes in real time.

Bakery departments will be visually highlighted in the sales area and arranged so that visitors could see them immediately when entering the store and make a quick purchase. Self-service checkouts will be installed to save the time of customers.