MAGNIT AND X5 RETAIL GROUP TO OFFER PRODUCTS AT COST PRICE

Moscow, April 2, 2020: Magnit and X5 Retail Group—the largest Russian retailers—have decided to sell several socially important product categories with zero markup for at least one month.

The initiative is aimed at supporting socially vulnerable customers in the face of the challenging epidemiological situation currently impacting the country. Each retail chain will establish a list of essential food products in the “first price” segment, which will then be offered to customers without any markup—i.e., at the same price the chain pays to the manufacturers.

The leaders of Russian retail are looking to constructive efforts from producers and suppliers to support the initiative and help maximize its impact. Magnit and X5 Retail Group also invite all retail companies of any format to join the initiative.

“Many of our customers, especially from low-income households, face quite a challenging situation today. For us, it’s important to support these customers and allow them to minimize their spending on essential food products”, —noted Jan Dunning, Magnit’s Chief Executive Officer.

“The current situation has prompted us to take special measures to support our customers. ‘First price’ products are essential for socially vulnerable population segments, and it’s these people we have to attend to first. We hope that our joint initiative will resonate with our suppliers and allow us to get the lowest possible wholesale price for these products”, —said Igor Shekhterman, CEO of X5 Retail Group.

Magnit and X5 Retail Group to offer products at cost price