Krasnodar, Russia (21 August, 2019): Magnit PJSC (MOEX and LSE: MGNT), one of Russia’s leading retailers launches loyalty program across Russia.

By the end of the year, the Loyalty Program will be covering all stores across 65 subjects of the Russian Federation and will be introduced in all Magnit formats: convenience stores, supermarkets, drogeries and pharmacies. The pilot project of the program was found successful in all 3 regions.

The large-scale launch of the cross-format Loyalty Program first started in Siberia. From August 20, 2019 citizens of Kemerovo and Novosibirsk regions can receive their Magnit Family Cards. After that, the project will be launched in Republic of Khakassia, Altay, Krasnoyarsk, Omsk, Orenburg and other regions. According to the plan, by the end of 2019 the program will cover the whole retail chain geography, from Moscow to Krasnoyarsk, and will be introduced in 3,354 localities.

The Loyalty Program was piloted in Yaroslavl, Kostroma and Chelyabinsk regions in the period of April- July. The pilot covered about 900 stores. Within the four months, Magnit issued 1.5 M of loyalty cards, which is 1.5 times more that the target amount. At the same time, about 20% of program participants issued a virtual card in their mobile apps. By the end of the pilot, the share of purchases made with the card amounted to almost 60% of total revenue. The program demonstrated its effectiveness as a cross- format instrument in pilot regions, with almost a 7 percent increase in the number of customers, purchasing in 2 or more formats of the Family of Magnit stores.

Jan Dunning, Magnit’s President and CEO, commented:

“The Loyalty Program is a linking tool of Magnit’s ecosystem. We were able to interest our customers — this is what all of our key metrics demonstrate, with most of them exceeding target values during the pilot. Today we commence a step-by-step launch of the program across the whole geography of the company. And this is only the beginning. We’ve prepared a foundation for the development of the comprehensive loyalty platform, which will very soon allow us to make personalized offers to our customers, create clubs focused on customer interests and attract external partners.”

The key feature of the Magnit Loyalty Program is the possibility to collect and spend bonus points in all retail chain formats: Magnit Convenience and Magnit Cosmetic stores, Magnit Family supermarkets, and Magnit Pharmacies.

Our award system is one of the most beneficial on the market: when making a purchase, customers receive a bonus of 0.5-2%* from the purchase amount to their bonus account. Aside from basic points there are also personal ones for participation in different promos. 1 bonus equals RUB 1. Magnit Card is issued for a certain ticket value; it may also be purchased for RUB 25 in any retail chain store or issued free of charge in the mobile app to be used as a virtual card. Customers may use their bonuses to pay for up to 100% of goods value.

* % of bonus award depends on the purchase volume in the previous month

Magnit Launches Loyalty Program across Russia