Blog: "Immodest" CEO proclaims Magnit's Russian leadership
Michelle Russell | 12 April 2013
The CEO of Magnit is afraid to be seen to be blowing the Russian retail group's own trumpet, but what the heck, he will anyway.
He apparently has every reason to be pleased. Magnit, he claimed today in a stock exchange announcement, is now number one in sales in Russia's food retail sector.
The inevitable, then, has happened. Magnit, owned by Russian billionaire Sergey Galitskiy, overtook sales at its rival X5 for the first time since the company opened its first stores 15 years ago.
Magnit had been touted for some time by analysts to overtake its closest rival at some point this year.
Over the last few years, X5 has struggled to defend its market share. Its results today revealed an 8.1% increase in first-quarter net sales and less buoyant like-for-like sales.
In contrast, Magnit reported a sales rise of more than 30% earlier this week, with like-for-like sales growth of 4.8%.
Commenting on the news this morning (12 April), Galitskiy said: "I'm afraid to be found immodest, but for the first time over the last 15 years after opening of the first store we have become the leader in the food retail sector by sales."
Magnit investor relations director Timothy Post had hinted to just-food earlier this week on the release of its results that such an announcement was imminent.
He said: "X5 had always had the largest revenue but that's now flipped, it's just not public yet."
And so the focus for Magnit now will be to continue doing what it does best, expand. The Russian retail colossus already has plans to open almost 10,000 new stores by 2017.
Watch the just-food space for a more detailed analysis on Magnit's position in the Russian food retail sector next week.
The BBC turned to just-food today for insight on the price dispute between Tesco and Unilever....
Just weeks after buying UK turkey processor Bernard Matthews from administration, food tycoon Ranjit Boparan has struck a similar deal....
Shares in Tyson Foods slumped on Friday, closing down almost 9% after an analyst claimed a lawsuit facing the company could hit the US meat titan....
- Price an underlying tension across European FMCG
- Interview: UK trade body on Brexit's policy impact
- Danone's Q3 sales - what the analysts say
- Interview: UK trade body on the impact of Brexit
- It won't just be Unilever to push for Brexit hikes
- Nestle lowers outlook on "softer environment"
- Bel takes majority stake in MOM Group
- Mars launches Maltesers in the US
- Abbott sees international nutrition sales fall
- Online snack seller Graze makes US retail debut
- The Big 15: Strategies and Priorities of Top Packaged Food Players in Comparison
- Omega-3 in Food and Beverage:Time for a Reboot?
- Global Food Packaging: Innovating for Greater Convenience and Quality Image
- Packaged Food: Quarterly Statement Q3 2016
- Constellation Brands, Inc. (STZ) - Financial and Strategic SWOT Analysis Review