MAGNIT PJSC (MGNT)
Magnit Names 2021 Bestsellers
Krasnodar, Russia (December 22, 2021): Magnit PJSC (MOEX and LSE: MGNT; the Company, Magnit), one of Russia's leading retailers, announced analytics about consumer demand over the past year and named the top items with the highest sales uplift.
Products for outdoor activities
Sales in this category grew by 81% compared to the last year on the back of an unusually hot summer - according to weather forecasters, the average June temperature in the European part of the country was the highest ever recorded. In Magnit, customers primarily bought framed swimming pools and related accessories, as well as double size inflatable mattresses.
The drivers behind the increasing sales of ready-to-eat products remained the same: COVID-related restrictions on visits to restaurants and other foodservice locations, as well as the fear of catching the disease in crowded places. The dynamics were also influenced by the rapid development of express delivery coupled with the already common trend towards saving time, which is especially relevant for metropolitan residents. In Magnit's big boxes, sales of ready-to-eat assortment grew by 33%, with demand for second courses and salads increasing by 27% and 19% respectively.
Make-up and perfumes
Demand for cosmetics and perfumes began to recover in 2021, since many people returned to their offices (or switched to a hybrid work model), while shopping malls opened their doors once again after the restrictions were lifted. Sales of this category in Magnit stores grew by 19% in value terms compared to 2020, and this trend is expected to continue on the back of, among other things, the launch of the revamped Magnit Cosmetic format, store clusterization, as well as further development of assortment, primarily via unique products and private labels.
Sales of this category of products in Magnit stores increased by 17%, growing ahead of the market, with wet cat and dog food remaining at the top. The growth is primarily due to the fact that during the lockdown period, Russians began keeping pets more often. According to leading pet food manufacturers, today, two out of three Russian families have pets, and the number of pets has been increasing steadily over the past few years, which in turn drives the demand for high-quality specialized pet food.
Magnit's e-commerce specialists note that, in 2021, instant noodles became one of the best-selling items, with the majority of purchases made via express delivery. Turkey meat was also in great demand online, with the Company recording five times more sales than in its brick-and-mortar stores. The trend towards healthier living is also reflected in the sales of fresh fruits and vegetables, which are growing almost 2.5 times faster than in most of the others.
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