Magnit Enters the Dagestan Market

Krasnodar, Russia (March 18, 2021): Magnit PJSC (MOEX and LSE: MGNT; the Company, Magnit), one of Russia’s leading retailers, and the Government of the Republic of Dagestan signed a cooperation agreement under which the Company plans to open around 180 stores in the region in the next five years. The document was signed by Abdulpatakh Amirkhanov, Chairman of the Government of the Republic of Dagestan, and Jan Dunning, President and CEO of Magnit, in the presence of Sergey Melikov, Acting Head of the Republic of Dagestan. Magnit is to become the first federal food retailer in the Republic.

The amount of investments in the development of the chain in Dagestan will amount to over RUB 2 bn. In the next five years, Magnit plans to open about 120 convenience and about 60 Magnit Cosmetic stores in the Republic. The Company plans to create over 2,000 new skilled jobs in the region. The Republic will become the 67th region of the retailer’s presence.

Special attention in the agreement is paid to the development of small and medium-sized enterprises in Dagestan, including the launch of the products thereof on the shelves of the Company’s stores. It is expected that Magnit will actively cooperate with local producers, which will increase the demand for local goods and the recognition of Dagestan brands not only in the Republic, but across the federal geography. Magnit plans to hold trainings where specialists will be able to answer the relevant questions from manufactures regarding working with the chain and provide help in solving various issues.

The first Magnit store is planned to open in July this year in the capital of the region, Makhachkala. Then the stores will appear in the cities of Derbent, Kaspiysk, Izberbash and Dagestanskiye Ogni.

“We are truly interested in Dagestan. We believe that the region has great potential for the development of modern retail formats. We plan to open the stores of our two most popular formats in the Republic, namely Magnit Convenience and Magnit Cosmetic. They combine convenient location, wide assortment for everyday shopping and high service standards. In addition, we are interested in having high-quality goods from Dagestan manufacturers on our shelves, so we will do our best for their promotion, including outside the region”, – commented Jan Dunning, President and CEO of Magnit.

Magnit enters the Dagestan market