Russia's Magnit has upgraded its store opening guidance for 2021, following the announcement that it has reached agreement to take-over the long-term leasehold rights for the 58 stores currently operating under the Radezh brand in Volgograd.
The group now plans to open approximately 2,100 stores across its various formats over the course of the year, as part of its organic expansion, it said.
Its full-year redesign programme and capex guidance for the year (RUB 60 billion to RUB 65 billion) remain unchanged, it added.
The acquisition follows on from Magnit's recent takeover of the leasehold rights for 56 Edelweiss outlets in Kazan.
The Radezh stores are located in Volgograd (41), Volgograd region (15) and Rostov-on-Don region (2), and between them boast 22,000 square metres of selling space.
The lease rights on the stores will be obtained for between seven and ten years, Magnit said.
Across the 58 sites, Magnit plans to open 59 Magnit-branded stores, including 55 convenience stores and two drugstores, with a further site comprising both formats under one roof.
“This agreement is another evidence of our continued accelerated expansion on the Russian market," commented Andrey Bodrov, Magnit's chief strategy and investment officer.
"The pool of Radezh stores follows our recent transaction with Edelweiss in Kazan. The locations are a good fit to Magnit store portfolio and will further strengthen our competitive position in the Volga region. In addition to the solid organic expansion, Magnit’s value-accretive M&A activity marks our leadership in the market consolidation process."