RUSSIA: Magnit to speed up store closures after weak Q3 | Progresiv
The Magnit retail chain has said it will accelerate the closure of loss-making stores, after reporting a drop in profit for its third quarter. 
The group said it will focus on identifying and shutting down inefficient stores, while revamping others, putting a brake on its rapid expansion. CEO Sergey Galitskiy said the decision could mean a net increase in stores “could be less”.
Magnit did not say how many outlets it plans to shut down, but Galitsky said it will aim to refurbish 1,000-1,500 stores in the next year.
The comments came as revenue for the third quarter grew by 14% to 790.1bn roubles, a slowdown from the 24.5% growth it recorded in FY2015. However, sales at revamped outlets were up between 20% and 60%.
LFL sales at its convenience stores rose by 2.6% for the period, while its cosmetics banner recorded a 5.1% increase. However, sales at its hypermarkets were down 9.6%, while the Magnit Family stores saw a 6.1% decrease. All formats were hurt by a decrease in either average ticket spend or customer traffic. (www.kamcity.com)
