Magnit

Magnit (Магнит, "Magnet") is one of Russia's largest food

PJSC Magnit
retailers.[2] It was founded in 1994 in Krasnodar by Sergey
Galitsky. As of March 2016, the company had 12,434 stores in
2,385 locations. They include 9,715 convenience stores, 225
hypermarkets, 2,337 Magnit Cosmetics stores and 157 Magnit Native name ПAO "Магнит"
family stores.[3] The company employs more than 140,000
people and has been opening several dozen stores each month. Type Public (PAO)
Traded as MCX: MGNT (https://
Since 2006, the company has developed a chain of "Magnit" www.moex.com/en/is
hypermarkets in many Russian cities and towns. It overtook its sue.aspx?code=MG
rival X5 Retail as Russia's largest retailer in terms of sales in NT)
April 2013, although it is still under-represented in Moscow.[4] LSE: MGNT (https://
As of July 2014, it is the world's fourth largest retailer by market www.londonstockexc
capitalization.[5] However, the largest retailer in Russia in 2017 is hange.com/stock/M
the X5 Retail Group.[6] GNT//)
Industry Retail
Since November 2021 Marathon Group owned by Alexander
Vinokurov has become the largest shareholder[7] Founded 1994
Founder Sergei Galitsky
Headquarters Russia, Krasnodar
Contents Number of 18,399 (2018)
locations
History
Key people Jan Dunning (CEO)
Finance
Products Consumer goods
Management
Revenue $21.5 billion[1] (2020)
In-house production facilities
Operating $5.06 billion[1] (2020)
Staff income
References Net income $456 million[1] (2020)
External links Total assets $13.1 billion[1] (2020)
Total equity $2.53 billion[1] (2020)

History Number of
employees
300,000

The founder of Magnit retail chain, Sergey Galitsky, established Website www.magnit-info.ru
JSC Tander in 1995.[8] (http://www.magnit-in
fo.ru)
In 2004, the retail chain was "rebooted", adopting the
convenience store format. At the same time, the company was wrapping up its wholesale operations that
distributed household chemicals and perfumes, and switched capacity from its Krasnodar-based trade centre
to the distribution complex in Kropotkin. Six years after its establishment, Magnit retail chain grew to 1000
stores all over the country. In 2005, the number of stores was already 1500; the company overtook
Pyaterochka in total revenue.[9]
In 2010, Deloitte – a multinational consulting services
provider – included Magnit in its list of the world’s top 250
retailers. The same year, the company opened its first store
under the drogerie format – Magnit Cosmetic.[10]

In 2014, Magnit became the largest Russian importer. During

the same year, its stores were equipped with cashless
payment terminals and started introducing self-service
checkouts. The company began construction of its own Magnit shop in Glazov
greenhouse complex in Krasnodar Krai. In 2015, Magnit
became the first Russian chain to reach the 10,000-store
milestone and demonstrated record growth rates. Analytical
data showed that every 10th ruble spent by Russian
households went to Magnit.[11]

In 2017, Magnit increased the number of its distribution

centres to 36. The company also launched the first Magnit
Pharmacy and Magnit Cash&Carry stores. The same year,
operations started at its button mushroom production facility,
the largest of its kind in Russia. In 2017, Magnit was placed Magnit Extra shop in Tyumen
3rd in Baker Tilly’s list of Russian businesses with the
highest intellectual capital. In 2018, the company opened
outlets in offices of Russian Post. The same year, Magnit joined the ranks of the world’s largest public
companies in Forbes’ Global 2000, becoming the only Russian retailer on the list.[12]

In 2018 Marathon Group acquired 11,82% stake in Magnit from VTB[13]

In early June 2018, Magnit announced that it began negotiations with Marathon Group to acquire JSC SIA
International Ltd – SIA Group’s pharmaceutical distributor.[14] Later, in October that year, the acquisition
was approved by Magnit’s Board of Directors. It was noted that the transaction amount – which was stated
at 5.7 billion rubles or less – would be paid in Magnit’s securities. Also, under the agreement, Marathon
Group undertook to not sell Magnit’s shares for at least 3 years after the deal was closed.[15] The
acquisition was a part of development strategy for Magnit Cosmetic and Pharmacy businesses.[16][17][18]

In June 2018, Magnit and Russian Post started piloting post office-based outlets in Moscow, Krasnodar
Krai, and Ryazan Oblast.[19]

On 29 February 2019, Magnit retail chain announced that it would update its brand identity in accordance
with the new cross-format concept. After the update, all stores would have the same visual style and share
the same slogan: "Let’s bring families together!”.[20]

Since May 2019 Marathon Group’s President Alexander Vinokurov has become the Member of the
Magnit’s Board of Directors.[21]

Magnit announced its 2023 Development Strategy in September 2018. The company plans to increase its
share on the Russian market from 6 to 15%.[22]

In May 2021, «Magnit» announced the upcoming purchase of a controlling stake in all «Dixy» stores for
92.4 billion rubles. The «Dixy» chain includes 2.6 thousand stores, half of which are located in Moscow
and the Moscow region. It is assumed that «Dixy» will continue to operate as an independent legal entity,
and all stores will continue to operate under their own brand.[23] In July, the FAS approved the deal, but
put forward restrictions: the merger of networks is possible only in those municipalities where the share of
«Magnit» doesn’t exceed 25%. As a result, 142 «Dixy» stores will not be included in the «Magnit»
network.[24]

In October 2021, “Magnit” opened in Krasnodar the first pharmacy darkstore with expanded range of
products in order to supply an online demand in about 30 drugstores. Customers can also book their
purchases in Moscow, Saint-Petersburg, Karelia as well as in Leningrad, Murmansk, Novgorod, Pskov and
Tver Oblast regions. During 2021, “Magnit” also started cooperating with drugstore marketplaces.[25]

In November 2021 Marathon Group increased its stake to 29,2% and become the largest shareholder.[26][7]

Finance
According to the quarterly statements for the second quarter of 2019 dated 25 July 2019, Magnit reported a
total revenue of 342.9 billion rubles, with an IFRS 16 adjusted net income of 2.5 billion rubles.[27]

Management
Sergey Galitsky served as the CEO of Magnit Group since its establishment and until February 2018. In
February 2018, Galitsky made the decision to sell the majority of his stake in the company to VTB
Bank.[28][29] After the deal, a new Board of Directors was elected, and a new management team was
formed.[30]

In May 2018 Magnit hired Olga Naumova as CEO.[31] As from 26 June 2019, Jan Dunning serves as
Magnit’s CEO (succeeding Olga Naumova,[32] who left the company in the second quarter of 2019).
Dunning also holds the office of the chain’s President, having been appointed on 17 January
2019.[33][34][35]

In-house production facilities

During the 2015 International Investment Forum in Sochi, Magnit signed an investment agreement for
development of an industrial park in Dorozhny village in Krasnodar Krai.[36] The park would cover over
236 hectares and have more than 20 tenants, with the amount of investment planned until the end of 2020
totaling at over 40 billion rubles.[37] In 2018, operations started at the first production facility – Kubanskiy
Kombinat Khleboproduktov (Russian: "Кубанский комбинат хлебопродуктов" – Kuban Cereal
Products Factory), one of the largest of its kind in Russia. Its output would cover up to 60% of the chain’s
demand for pasta, bread, and bakery products.[38]

Staff
As reported by Forbes, Magnit is one of the largest Russian employers, with over 280 thousand employees
as of 2017.[39]

References
1. "FY 2020 Audited Financial Results" (https://www.magnit.com/upload/iblock/537/%D0%9
C%D0%B0%D0%B3%D0%BD%D0%B8%D1%82_%D0%A4%D0%B8%D0%BD%D0%B
0%D0%BD%D1%81%D0%BE%D0%B2%D0%B0%D1%8F%20%D0%BE%D1%82%D1%
87%D0%B5%D1%82%D0%BD%D0%BE%D1%81%D1%82%D1%8C%20%D1%81%20%
 D0%90%D0%97_2020_%D0%B0%D0%BD%D0%B3%D0%BB.pdf) (PDF). Magnit. 15
March 2021. p. 73. Retrieved 15 March 2021.
2. "A Magnit for investors" (https://www.economist.com/news/business/21579023-retailer-doing
-well-business-unfriendly-country-magnit-investors). 8 June 2013. Retrieved 26 January
2017 – via The Economist.
3. "Magnit today - Magnit retail chain" (https://web.archive.org/web/20170428230506/http://mag
nit-info.ru/en/about/today/). magnit-info.ru. Archived from the original (http://magnit-info.ru/en/
about/today/) on 28 April 2017. Retrieved 26 January 2017.
4. "X5 сдалась "Магниту" " (http://www.gazeta.ru/business/2013/04/12/5253249.shtml).
Gazeta.Ru. Retrieved 26 January 2017.
5. Ведомости (14 July 2014). " "Лента" указала X5 на место в рознице" (http://www.vedomo
sti.ru/companies/news/28921131/lenta-ukazala-x5-na-mesto-v-roznice). Vedomosti.
Retrieved 26 January 2017.
6. Rennack, Sebastian (24 April 2017). "X5 Widens the Gap with Magnit" (https://www.lebensm
ittelzeitung.net/european-view/X5-Retail-Group-X5-Widens-the-Gap-to-Magnit--128676).
Lebensmittel Zeitung. Retrieved 30 June 2018.
7. "Magnit announces the changes of the rights of VTB Bank and Marathon Group to dispose a
certain number of votes accounted for voting shares of PJSC Magnit" (https://www.magnit.co
m/en/media/press-releases/magnit-announces-the-changes-of-the-rights-of-vtb-bank-and-m
arathon-group-to-dispose-a-certain-numbe/). magnit.com. Retrieved 10 December 2021.
8. "АО "Тандер": история компании "Магнит" " (https://moneymakerfactory.ru/spravochnik/isto
riya-kompanii-magnit/). moneymakerfactory.ru. Retrieved 18 July 2019.
9. Ведомости (13 January 2006). "Новый лидер" (https://www.vedomosti.ru/newspaper/article
s/2006/01/13/novyj-lider). Vedomosti. Retrieved 18 July 2019.
10. Ведомости (22 December 2010). "Сеть "Магнит" пробует себя в косметике" (https://www.
vedomosti.ru/business/articles/2010/12/22/krasota_ot_magnita). Vedomosti. Retrieved
18 July 2019.
11. Ведомости (30 September 2015). "Российские домохозяйства тратят в "Магните"
каждый десятый рубль" (https://www.vedomosti.ru/business/articles/2015/09/30/610812-v-
magnite-kazhdii-desyatii). Vedomosti. Retrieved 18 July 2019.
12. "Forbes включил "Магнит" в рейтинг лидирующих фирм мира Forbes Global 2000" (http
s://kuban.rbc.ru/krasnodar/07/05/2015/5592b4069a7947de211fc2e8). RBC. Retrieved
18 July 2019.
13. "ВТБ расщепляет «Магнит»" (https://www.kommersant.ru/doc/3637593). kommersant.ru.
Retrieved 10 December 2021.
14. " "Магнит" ведет переговоры с Marathon Group о покупке фармдистрибутора "СИА
Групп" " (https://1prime.ru/business/20180606/828906110.html) (in Russian). ПРАЙМ. 6
June 2018. Retrieved 4 June 2019.
15. " "Магнит" стал владельцем фармдистрибьютора "СИА Групп" " (https://www.interfax.ru/b
usiness/640143) (in Russian). Interfax. Retrieved 4 June 2019.
16. "Совет директоров "Магнита" одобрил покупку "СИА групп" " (https://rns.online/consumer
-market/Sovet-direktorov-Magnita-odobril-pokupku-SIa-grupp--2018-10-05/). Rambler News
Service (RNS). 5 October 2018.
17. " "Магнит": приобретение СИА Групп состоится на относительно приемлемых
условиях" (https://news.rambler.ru/other/40967471-magnit-priobretenie-sia-grupp-sostoitsya
-na-otnositelno-priemlemyh-usloviyah/?updated). Рамблер. 8 October 2018.
18. " "Магнит" подал ходатайство в ФАС о покупке фармдистрибьютора "СИА Групп" " (http
s://www.interfax.ru/business/636291). Interfax. 2 November 2018. Retrieved 1 December
2018.
19. " "Магнит" и "Почта России" запустили розничные продажи в 13 отделениях" (https://tas
s.ru/ekonomika/5331853). TASS. 28 June 2018.
20. "Сеть "Магнит" провела ребрендинг" (https://www.kommersant.ru/doc/3893305) (in
Russian). Kommersant. 21 February 2019. Retrieved 21 February 2019.
21. "В совет директоров "Магнита" вошли глава Lamoda и владелец Marathon Group" (http
s://tass.ru/ekonomika/6494886) (in Russian). tass.ru. 31 May 2019. Retrieved 10 December
2021.
22. "Курс на 15% рынка: "Магнит" озвучил планы развития компании до 2023 года" (https://
kuban.rbc.ru/krasnodar/26/09/2018/5bab9b119a7947434c2a3efa). RBC. Retrieved 18 July
2019.
23. "«Магнит» покупает «Дикси» за 92,4 млрд" (https://www.kommersant.ru/doc/4816494).
kommersant.ru. Retrieved 10 December 2021.
24. "Строгий отбор: ФАС одобрила сделку «Магнита» и «Дикси»" (https://kuban.rbc.ru/krasno
dar/freenews/60efe7cb9a794786e2a1b5ea). rbc.ru. Retrieved 10 December 2021.
25. "Магнит открыл в Краснодаре пилотный аптечный даркстор" (https://tass.ru/ekonomika/1
2753525?utm_source=yxnews&utm_medium=desktop&nw=1635319996000) (in Russian).
ТАСС. 25 October 2021.
26. "ВТБ продаст купленные у Галицкого акции «Магнита»" (https://www.rbc.ru/business/18/1
1/2021/619676789a7947d5d36071ce). rbc.ru. Retrieved 10 December 2021.
27. "МСФО 16 (IAS 16)" (https://finotchet.ru/articles/138/). finotchet.ru. Retrieved 6 August 2019.
28. Ведомости (16 February 2018). "ВТБ станет крупнейшим акционером "Магнита" " (http
s://www.vedomosti.ru/business/articles/2018/02/16/751222-galitskii-prodaet-aktsii-magnita-v
tb). Vedomosti. Retrieved 18 July 2019.
29. Ведомости (16 February 2018). "Prosperity Capital назвал сделку ВТБ и "Магнита"
плевком в лицо инвесторам" (https://www.vedomosti.ru/business/articles/2018/02/16/7512
35-vtb-magnita-plevkom-litso). Vedomosti. Retrieved 18 July 2019.
30. "Галицкий продал ВТБ 29% акций "Магнита" " (https://www.rbc.ru/business/16/02/2018/5a
866f4c9a79470ce0830580). RBC. Retrieved 18 July 2019.
31. "Russia's Magnit names former X5's Naumova as executive director" (https://www.reuters.co
m/article/russia-magnit-appointment/russias-magnit-names-former-x5s-naumova-as-executiv
e-director-idUSR4N1SG01I). Reuters. 16 May 2018. Retrieved 30 June 2018.
32. "Экс-глава "Пятерочки" стала руководителем "Магнита" " (https://tass.ru/ekonomika/5314
026). TASS. Retrieved 18 July 2019.
33. "Притягательный "Магнит": зачем сети понадобился топ-менеджер "Ленты" " (https://ww
w.rbc.ru/business/17/01/2019/5c3de6f79a79471a8b8c127c). RBC. Retrieved 18 July 2019.
34. "Экс-глава "Ленты" Ян Дюннинг станет президентом "Магнита" " (https://1prime.ru/busin
ess/20190117/829620328.html) (in Russian). ПРАЙМ. 17 January 2019. Retrieved 18 July
2019.
35. "Президентом "Магнита" назначен бывший глава "Ленты" | Бизнес" (https://www.forbes.r
u/biznes/371379-prezidentom-magnita-naznachen-byvshiy-glava-lenty). Forbes.ru. 17
January 2019. Retrieved 18 July 2019.
36. "Индустриальный парк "Краснодар" розничной сети "Магнит" готовится к запуску
первого производства" (https://news.rambler.ru/other/40998952-industrialnyy-park-krasnod
ar-roznichnoy-seti-magnit-gotovitsya-k-zapusku-pervogo-proizvodstva/) (in Russian).
Рамблер/новости. Retrieved 18 July 2019.
37. " "Магнит" начинает индустриализацию в парке" (https://www.kommersant.ru/doc/345031
1). Kommersant.
38. "Конфетки-бараночки: "Магнит" открыл первое производство в своем промпарке" (http
s://kuban.rbc.ru/krasnodar/17/12/2018/5c169f919a7947ff1b928601). RBC. Retrieved 18 July
2019.
39. " "Магнит" возглавил рейтинг самых крупных работодателей России" (https://kubnews.r
u/ekonomika/2017/10/08/-magnit-vozglavil-reyting-samykh-krupnykh-rabotodateley-rossii/)
(in Russian). kubnews.ru. Retrieved 18 July 2019.

External links
Official English Web site (https://archive.today/20131218040443/http://www.magnit-info.ru/e
n/)
Investor Relations web site (http://ir.magnit.com/en/)

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