Magnit Sees Like-For-Like Sales Boost In Second Quarter
Russian retailer Magnit has posted a 7.2% increase in like-for-like sales in the second quarter of its financial year, boosted by a 24.7% increase in average basket size.
Traffic was down 14.0% in the quarter, in a period that was dominated by the coronavirus and its effect on consumer behaviour.
Challenges And Opportunities
"The second quarter was another period of unprecedented challenges on the one hand, but new opportunities on the other," commented Jan Dunning, Magnit chief executive.
"COVID-19 had an extraordinary impact on people and industries worldwide. Under these challenging circumstances, health and safety of our customers and colleagues remained our first priority."
Total net retail sales in the period stood at RUB 379.2 billion, which was a 17.9% increase on the same period the previous year.
The retailer opened 177 new stores in the second quarter, including 94 convenience stores, 82 drugstores and one supermarket, and closed 143 outlets, giving it a new new store addition of 34.
As of 30 June, Magnit operates 20,894 stores across Russia.
Announcing the results, Dunning noted that both customer behaviour and demand pattens shifted during the quarter, with shopper preferences "towards affordable offering, relevant assortment and service levels" as the period drew on.
"We were adapting to new buying trends and preparing for potentially lasting changes to continue growing in a new normal," he added.
The retailer also noted that since the period ended, like-for-like sales have also accelerated in July, making it the second strongest month of the year so far, after March.
"We are confident in a resilience of the business model and our ability to achieve continued success and growth over the long term," said Dunning.
Following the publication of Magnit's second-quarter results, ESM had the opportunity to speak to CEO Jan Dunning about the retailer's future plans. This interview will be featured in the forthcoming ESM Issue 5 2020, which will be published in September.
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.