Magnit, a Russia-based grocery retailer, plans to double its market share in three to four years and return to the top of the country’s grocery market in terms of sales revenues, according to the company’s general director, Khachatur Pombukhchan, cited by the Rambler News Service (RNS).
Magnit is now completing the development of the strategy and plans to revise its value proposition to its customers to increase traffic to its stores even by the second half of 2018, Mr Pombukchan said. Magnit’s retail format differentiation will help grow the attractiveness of its stores to customers, he said. He also revealed that at the end of the first half of 2018, Magnit plans to submit the new strategy to a new board of directors for approval.
What is more, Magnit considers opening its own online store for Russian consumers, Mr Pombukhchan said. The company is actively involved in this project and currently assessing its profitability.
According to Magnit’s general director, the company does not want to rush with the launch of online sales since an internet store is a complex project involving logistics, customer loyalty, and a better understanding of consumer behaviour and needs. Magnit is working on it, but the retailer will only start online sales when it understands exactly what it brings to the company in terms of revenues, he explained.
As of 31 March 2018, Magnit operated 16,625 stores on the Russian market, including 12,283 Magnit discount outlets, 242 eponymous hypermarkets, 201 Magnit Semeyny hypermarkets, and 3,890 Magnit Kosmetik cosmetics stores.