Denis Manturov Visits Magnit’s Superstore in Adler to See Retail Technology in Action

During his working visit to the Krasnodar region, the Minister of Industry and Trade of the Russian Federation looked at retail innovations in the chain's flagship store. Mr. Manturov was also shown how the Chain works with Data Matrix labeling for dairy products, which is an important element of the product quality traceability system.

Krasnodar, Russia (August 12, 2020): Magnit’s superstore in Adler is an updated format of an urban hypermarket. The store’s design follows the theme of sports, referring to the Olympic games; the outlet also boasts a number of digital solutions for its customers. Magnit tests more than 10 technologies here in order to identify optimal and convenient services for shoppers and employees, which will help them save both time and money.

Mr. Manturov was shown one of the experimental projects — Data Matrix labeling for dairy products, which is piloted by Magnit together with LLC Vakinskoe Agro and the Advanced Technologies Development Center. During the demonstration, the labelling code was successfully processed by the cash register. After implementing the system, the retailer will be able to track the quality of products throughout the supply chain in real time, and the customer will be able to find out more about the milk through the Chestny ZNAK app in their smartphone. Using an interactive interface, the Company also shown the Minister how it controls and ensures the temperature of the product all the way from the manufacturer to the store. Now the Chain is looking to enlist Russian manufacturers to scale this technology.

Mr. Manturov was also shown several “smart shelf” technologies based on video analytics, RFID systems, and weight and optical control. These help maintain a high level of service for the customers by enabling the Chain to continuously track the availability of goods in a specific spot, remotely respond to gaps on the shelves via a smartphone or tablet, with shelf video analytics also allowing the Company to check the availability and correctness of price tags.

Video analytics also helps Magnit minimize queues and monitor the observance of distances between customers against the backdrop of the coronavirus pandemic. Video cameras near the cash register constantly count the number of people and the distance between them and submit data to the store management. This allows quickly opening additional cash registers and turning on additional audio notifications regarding the need to observe social distancing rules. Another solution that helps customers shop faster is Magnit's own development — MobiScan. Using the app in your smartphone, you can scan goods in the store and quickly pay for them at self-service checkouts. There is also SELFIETOPAY — a payment technology based on face recognition that allows you to pay for your purchases without using a bank card or cash.

In the superstore, customers can also benefit from a variety of loyalty program options: collect virtual stickers for promotions, join the Healthy Habits Club for information about a balanced diet and increased bonuses for certain products, and get additional bonuses when purchasing from partners.

The trend to reduce the impact on the environment is also reflected in the superstore. Together with EcoTechnologies, a Russian-made reverse vending machine has been installed to collect empty plastic bottles and aluminum cans.

“Magnit is the only chain in the country that sells almost all labeled products. The company provides a unique platform for suppliers in terms of traceability experiments. Back in 2018, we joined the pilot on tobacco labeling, and at the beginning of this year, we became a strategic partner of the ATDC. Our main task is to make routine shopping as useful and fast as possible, to speed up and simplify processes for customers and employees. The traceability system and other projects we’re testing should help solve a number of important issues related to goods quality monitoring and process optimization”, — said Jan Dunning, President and CEO of Magnit Retail Chain.

"The goal of the labeling experiment is to develop the most optimal and inexpensive solutions for the industry, to maximize the use of existing technologies from manufacturers and printing houses. Retail is one of the main links of the commodity distribution chain, which must adjust its work. In the case of chains, the process is facilitated by the fact that they already work with other groups of labeled products. The experiment will continue until the end of the year, we can't linger here — we need to approach mandatory labeling prepared in order to rapidly achieve the goals of making the market more “white” and restoring competitive conditions for honest entrepreneurs", — said Mikhail Dubin, Chairman of the Board of Directors of the Advanced Technologies Development Center.