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Russia: Retailer Magnit opens over 500 My Price discount stores

Updated: Dec 15, 2022

Largest Russian retailer Magnit has expanded their discount network My Price with over 500 stores in 60 districts across Russia.

Discount stores are in demand by customers, meet the current trend for lean consumption and demonstrate strong operating results. Comparable sales of discounters increased by almost 60% compared to the same period in 2021.

Also, the positive dynamics is shown by the sales density, which has doubled compared to the first launches. The share of own brands in the turnover is now 20%, the company plans to increase it to 50% and in the near future launch a separate line of private labels for discounters. Now prices in discounters are on average 15% lower than for similar positions in convenience stores, while in some categories the decline is 30 - 40%.

Magnit is testing the format of discounters from mid-2020. The company developed the Discounter Value Proposition and created a new store design to differentiate this format for shoppers. Now all points My Price are open in a new design. Launches are underway in large cities and small settlements numbering up to 2,000 people, which makes it possible to increase the availability of goods for the population and ensure food security.

Most discounters were opened in Tatarstan, the Chelyabinsk region and the Krasnodar Territory. My Price is distinguished by a small area (100 - 250 sq m) and an assortment of about 2,000 items, simple zoning of retail space and the main set of equipment while maintaining a high level of service.

The investment in opening is 40% lower than the comparable size of the convenience store, which provides an attractive level of return on investment. "We continue to scale the format and increase its attractiveness for customers, including through the range. High operational efficiency allows us to translate savings into prices on the shelf and create the most interesting price offers," said Deputy General Director, Director for Retail Network Management at Magnit.

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