Magnit and Delivery Club Launch Express Delivery of Cosmetics

Krasnodar, Russia (December 7, 2020): Magnit PJSC (MOEX and LSE: MGNT; the Company), one of Russia’s leading retailers, and Delivery Club have launched a service for express delivery from Magnit Cosmetic stores. Delivery Club couriers are already delivering goods from Magnit Cosmetic stores in Krasnodar and Ekaterinburg. In 2021, the service will also become available in Moscow, Saint-Petersburg, and all major cities where Magnit operates. Delivery time is 30-45 minutes. There is no minimum order, and the delivery fee varies depending on the order amount: the larger it is, the cheaper the delivery, down to free-of-charge when ordering from 699 rubles.

Delivery Club users will have access to around 6,600 SKUs from Magnit Cosmetic stores, namely care and decorative cosmetics, household chemicals, as well as home care products. The goods will be delivered in compliance with all of the requirements of Russian legislation; to ensure that, Delivery Club has developed special sealed bags which can be carried by delivery agents both in and out of their backpacks.

Magnit Cosmetic became Delivery Club’s first specialized partner in cosmetics delivery. Previously, users could only get this category from the assortment of grocery stores connected to the service.

For Magnit, this also represents the first step in developing delivery from its drogerie format. Prior to this partnership, no delivery was available for products sold at Magnit Cosmetic stores.

“Based on the results of our work in the field of food delivery, we can see that there is also a great demand from consumers for complementary product categories. Most of these are present in grocery chains, but the interest for such products actually spans beyond what those chains can offer. For this very reason, we’ve launched pet products delivery in August 2020, and are now launching cosmetics delivery as well. Our partnership with Magnit in e-grocery demonstrates strong performance, and so we’re happy to start developing another delivery segment together. Delivery of products from Magnit Cosmetic is a new product on the Russian e-commerce market—previously, it was impossible to get cosmetics from a specialized store in just half an hour,”— Guvenc Donmez, Chief Executive Foodtech Officer at O2O Holding (joint venture of Mail.ru Group and Sberbank).

“Magnit Cosmetic is one of our most successful and in-demand formats. We are happy that now, in a partnership with Delivery Club, we will be able to offer our customers a new convenient service that will bring Magnit Cosmetic even closer to consumers and reinforce its position on the market. Express delivery of care and decorative cosmetics supplemented by a broad assortment of home care products and household chemicals is a service that currently has no match in Russian retail, and so we’re certain that this project will be successful. Magnit will continue to build up its presence in e-commerce to create a convenient ecosystem of digital and offline offerings for our customers,”—comments Florian Jansen, Magnit Deputy CEO and Executive Director.

Magnit Cosmetic is the fastest growing format of the Company. Net retail sales of the format grew by 24% in 9M 2020 and stood at 97.3 billion rubles, LFL sales growth was 10.3%. The share of drogerie format of the total Magnit retail sales reached 9.4% in 3Q 2020. At the end of 3Q 2020, Magnit operated about 6,000 Magnit Cosmetic stores in 65 regions of Russia.

Magnit and Delivery Club launch express delivery of cosmetics