Russia's Magnit Hits Milestone For Online Orders
Russian retailer Magnit has said that it has reached a milestone of 50,000 online orders per day, as it continues to grow its e-commerce services.
The retailer, which saw revenue rise 7.7% in the first half of its financial year, has ramped up its online capabilities in recent months – average orders per day stood at around 15,000 at the end of June.
Magnit now offers e-commerce services from 2,000 outlets in 62 regions and across 106 cities.
“In a fairly short time, we’ve managed to achieve good results in e-commerce," commented Andrey Lukashevich, director of e-commerce at Magnit. "Back in December 2020, the daily number of orders was at 7,000, and by September of this year we had already increased this figure more than sixfold."
As of the end of September, some 61% of Magnit's online delivery revenue now comes from outside Moscow and St Petersburg. The average ticket of each online order stood at RUB 1,200 (€14.08) as of the end of Q2.
Taking The Lead On A Regional Basis
"We see the main growth in those regions, where the competition is not as high as in Moscow and St. Petersburg," Lukashevich added. "As a result of that, we’ve managed to take the lead in many regions quite quickly.
"Today we’re actively scaling our cost-efficient partnerships with the leading players in the foodtech market, while paying a lot of attention to the development of our own delivery service as well.”
Magnit began testing e-commerce services during the second half of last year, both in-house and in partnership with Yandex. Eda, Delivery Club, Sbermarket and Wildberries. It currently operates 11 'dark stores' in the Moscow region, and aims to increase this to 20 by year-end.
By the end of 2021, Magnit's e-commerce services are expected to cover more than 4,000 stores across all formats.