23 Oct 2017 12:04

Magnit to test new hypermarket conception in 2018

MOSCOW. Oct 23 (Interfax) - Magnit will launch a new pilot conception of hypermarkets next year.

Hypermarkets are currently the worst performing segment out of all of Magnit's retailers.

"We are preparing a new draft conception of hypermarkets and the planned launch date for the pilot is the second quarter of 2018," Magnit head of sales and HR, Ilya Sattarov, said during a conference call on Friday.

Magnit hypermarkets saw revenue decline 8.3% to 107.6 billion rubles in 9M, while Magnit's remaining retailer formats saw sales grow. Revenue overall grew 6.4% to 841 billion rubles.

Like-for-like (LfL) sales declined 11.4%, which was worse than Magnit's other retailers. LfL traffic at hypermarkets fell 9.65% with the average ticket down 1.96%.

Magnit is Russia's biggest retailer by the number of stores. At the end of September, the company operated 15,697 stores, including 11,743 convenience stores, 236 hypermarkets, 196 Magnit family stores and 3,522 drogerie stores.