UPDATE: RUSSIA: Magnit DC to support space expansion
Magnit drives space growth
Russian retailer Magnit has said its new distribution centre in Yaroslavl will support the expansion of its store network in the region.
The company has said that it will open a 58,904 square metre facility in Yaroslavl, north east of Moscow and a transportation hub connected to the rest of Russia via national and regional roads, railways and waterways.
A spokesperson for the company told just-food the move would strengthen its existing store network and facilitate the opening of new outlets.
"The new distribution centre will both improve the service in our existing store network and support future store openings in the region," the spokesperson said.
"All our DCs are cross-functional from the format point of view with the exception of some non-food goods which are generally processed by our largest DC located in Ivanovo."
The company has focused on expanding its sales in Russia through a programme of aggressive store openings. In the first nine months of this year, to the end of September, Magnit increased its selling space by over 25%, opening 762 stores throughout Russia. As a result of this strategy, the company expects full-year sales to climb by 28-29%.
The group operates 20 distribution centres with a total capacity of around 542,031 square metres.
Russian retailer X5 Retail Group has reported a fall in margins in the first quarter as it embarked on a promotional offensive to lure in customers. ...
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