Magnit rents new distribution center in Moscow region

Noginsk, Russia (August 02, 2021): Magnit PJSC (MOEX and LSE: MGNT; the Company, Magnit), one of Russia’s leading retailers, announced the launch of a new distribution center in Moscow region, which will be housed in a modern facility with a total area of around 33,000 sq. m rented by the Company in Noginsk.

Today, there are around 1,900 Magnit stores of different formats in Moscow and Moscow region. They are served by two distribution centers located in Dmitrov (North) and Kolomna (Southeast) districts. The Noginsk hub will handle deliveries to around 400 stores in eastern Moscow and Moscow region, with delivery distances of up to 50 km. This will enable the Company to significantly improve the efficiency of its logistics in the region, as well as to decrease the prime cost of products and cut delivery times.

Magnit’s new distribution center includes ambient storage facilities, integrated chilled storage rooms, a warehouse for non-food products, an administration and amenities building, and a recycling facility. The hub will process around 1,500 tonnes of incoming products daily, with deliveries coming from both federal suppliers and local manufacturers.

The new warehouse will employ over 1,000 people and serve as a base for around 40 trucks. To ensure proper storage, picking, and delivery of products, the hub is automated to the maximum possible extent. For example, it employs automatic ordering and product slotting, and utilizes time slotting to choose the best time for a supplier to arrive for unloading. To assess the quality of fresh produce (fruits and vegetables), its acceptance is handled remotely: a team of experts from the headquarters evaluates every item using video cameras and other modern tools. The Company is currently implementing Pick-by-Voice technology to decrease order picking time and cargo handling costs. Product storage and dispatch are done using modern warehousing machinery and equipment. In addition to that, the Company controls the quality of products in real time: the distribution center is fitted with a remote temperature monitoring system that uses special sensors installed in storage chambers, loading areas, and refrigerated trucks.

Considering the new facility, as well as warehousing capacities previously acquired from DIXY, the Company currently has 45 distribution centers with a total area of 1,921 thousand sq. m.

“For us, the Noginsk distribution center has strategic importance. It will enable us to significantly shorten delivery distances, which will result in better availability and freshness on the shelf. We plan to ship products to all of our core formats: convenience stores, supermarkets, superstores, as well as Magnit Cosmetic stores. We intend to use the Noginsk distribution center to reinforce our presence in Moscow and Moscow region and create a solid foundation for future development in this geography,” - commented Fedor Pavlovsky, Logistics Director of Magnit Retail Chain.