Russian retailer Magnit has announced it has reached agreement for the long-term leasehold rights for 56 stores currently operating under the Edelweiss brand in Kazan.
The group said that the stores 'align with the company’s format strategy in terms of size and layout and are located in high-quality densely populated areas'.
The leasehold rights are planned to be obtained for up to 10 years, and will 'strengthen Magnit's position in the local market', the retailer added.
Store Expansion In Kazan
As of 30 September, Magnit operated 265 store in Kazan, including 183 convenience outlets, three supermarkets and 79 drugstores.
According to the agreement, Magnit, which recently announced the acquisition of the Dixy chain, plans to obtain leasehold rights in a number of stages, subject to successful legal and technical due diligence.
The retailer plans to open 67 stores in the premises occupied by the former Edelweiss outlets, including 50 convenience stores, 14 drugstores and three hard discounters.
These stores are expected to be opened between the fourth quarter of this year and the first quarter of next year.
'Strengthens Our Competitive Position'
“This agreement further strengthens our competitive position in the fifth largest city in Russia, expanding our presence in high quality and densely populated areas," commented Andrey Bodrov, chief strategy and investment officer.
"These additional stores are highly complementary to our existing portfolio and align with our successful growth strategy, which combines new store openings with value accretive market share consolidation opportunities."
Read More: Russia Lockdowns 'Unlikely To See Return To Panic Buying', Says Magnit CEO
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