Magnit Acquires Controlling Stake In Azbuka Vkusa

Azbuka Vkusa

Azbuka Vkusa operates 171 stores in several formats in Russia, comprising 107 supermarkets, 59 Azbuka Daily minimarkets, and five AV Market hypermarkets.

Most of the stores are located in Moscow (138 outlets) and the Moscow region (23 outlets), and the rest are located in St Petersburg, Magnit noted.

Evgeny Sluchevsky, CEO of PJSC Magnit, commented, “The Azbuka Vkusa brand is well known for its wide range of high-quality and exclusive products, high level of service, and loyal customer base.

“The purchase of Azbuka Vkusa gives us the opportunity to significantly strengthen our market position in Moscow and enter a fundamentally new segment of premium retail, which will allow us to close almost all purchasing missions in food retail.”

Azbuka Vkusa also operates an online delivery business from its stores and provides catering and other services.

Sluchevsky added, “In recent years, Azbuka Vkusa has hardly opened any stores, but after the deal, the company may receive a new impetus for development – ​​Azbuka Vkusa’s CVP is one of the strongest in its segment and is in demand in cities with over a million inhabitants.

“Azbuka Vkusa’s strong point is also prepared food. This expertise will help improve and expand the offer of Magnit Group stores in the segment that is currently the fastest growing in retail.”

The Deal

Magnit added that the total retail area of the acquired assets is 100,400 square meters, comprising approximately 77,900 square metres of supermarket space and 11,900 square metres of minimarkets.

The deal also includes five culinary, bakery and confectionery production facilities, three distribution centres, and warehouse delivery infrastructure.

Magnit plans to retain the Azbuka Vkusa brand and key management team, ensuring continuity and development of the chain’s customer experience.

Representatives from Magnit will be involved in the strategic management of Azbuka Vkusa’s business, it noted.

Denis Sologub, president of City Supermarket LLC (Azbuka Vkusa), added, “We are confident in the synergistic effect of combining efforts: Azbuka Vkusa’s experience with a unique product range, the company’s own production facilities and online services, combined with Magnit’s scale and resources, will certainly ensure further improvement of the entire Russian consumer market.”