Magnit Reports Holiday Period Revenue Growth Of 8.5%
Russian retailer Magnit has posted an 8.5% year-on-year growth in revenue for the period between 17 December to 31 December 2019.
The company reported a marginal increase in like-for-like sales, of 0.6%, while like-for-like traffic increased by 2.4%.
The like-for-like average ticket declined by 1.6% because of a lower average number of items per basket compared to 2018’s high base value driven by the pre-new year promo - 'Everything you need for magic within walking distance', the retailer said.
The average ticket for customers in this period amounted to RUB 395 (€5.78), with red sparkling wines and exotic fruits such as avocados, mangoes, and berries demonstrating the best sales dynamics, the retailer said.
The retailer sold more than 15 million bottles of champagne and wine, with Russian brands accounting for 80% of the sales.
'Increased Positive Dynamics'
Magnit’s president and CEO, Jan Dunning, said, "We’re happy with the results of the last two weeks of December of 2019. We saw the first signs back in November, when we achieved increased positive dynamics for like-for-like sales, including like-for-like traffic."
He also added that the retailer reviewed its assortment, introduced a high-quality new year offering, and increased the on-shelf availability of products to prepare for the holiday season.
"The loyalty programme also played an important part here, with its positive influence becoming more and more apparent," Dunning added.
Purchases on 30 December and 31 December accounted for 21% of its sales during the last two weeks of the year.
The new additions to Magnit’s assortment in the run-up to the new year included plants such as poinsettia, cypress, succulents, and spruces and firs.
In the last two weeks of the year, Magnit reported sales of around 22 thousand tonnes of mandarins, over 12 million boxes of chocolate sweets, 2.7 million cakes and cake halves, 5 million cans of caviar, and 15.4 million packs of tea and coffee.
Customers also stocked up on mayonnaise, buying a total of approximately 16.4 million units, the retailer added.
Its private-label products also witnessed an increase in demand in this period with sales of 405 tonnes of Magnit Freshness button mushrooms, 682 tonnes of cucumbers, and 1,328 tonnes of tomatoes.
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: The European Supermarket Magazine.