15 January 2018
Lenta meets its 2017 store opening guidance
In 2017, Lenta opened 40 hypermarkets and 49 supermarkets across Russia, increasing its selling space by 20.6%.
St. Petersburg, Russia; 15 January 2018 – Lenta (LSE, MOEX: LNTA), one of the largest retail chains in Russia, announces that the Company has met its hypermarket and supermarket opening guidance for 2017.
During the course of 2017, Lenta is proud to have accomplished the following milestones in the Company’s development:
- Opened 40 hypermarkets and 49 supermarkets, in line with the Company’s guidance;
- Added 236,329 sq. m of total selling space, totalling an overall 1,382,477 sq. m at the end of 2017;
- A total of 231 hypermarkets and 97 supermarkets in operation at the year-end;
- Signed an agreement to lease 14 hypermarkets in Moscow and the Russian regions previously operated under the NASH brand, which were then reopened as Lenta stores by the end of 2017;
- Entered 6 new cities, bringing the total number of locations to 83 cities across Russia;
- Rolled out its first supermarkets in Novosibirsk, Yekaterinburg, Tula, Vladimir and Ivanovo;
- Significantly extended its foothold in the Moscow market, increasing selling space in the Russian capital by 72%;
- Lenta will continue to consolidate its position in Moscow through its contract signed with ADG Group in 2017, enabling the lease of 36 supermarkets with a total space of 47,000 sq. m. The first supermarkets under the contract are scheduled to open in 2018;
- Lenta will continue its supermarket expansion in Siberia as facilitated by its November 2017 acquisition of 22 stores from Holiday Group. The renovated supermarkets will re-open as Lenta stores in Novosibirsk, Kemerovo, and Barnaul from February to March, 2018;
- Lenta joined and became a shareholder of EMD, Europe’s leading purchasing alliance, which will enable the Company to provide its customers access to an even broader range of affordable, quality products – including under Lenta’s private labels;
- Analytical Credit Rating Agency (ACRA) assigned Lenta a rating of “A+(RU)” with a stable outlook.
Lenta’s Chief Executive Officer Jan Dunning said:
“2017 proved to be a very successful year for Lenta. Despite a rather challenging situation in the consumer market, we succeeded in delivering on the guidance we provided for our expansion programme at the start of the year. The Company significantly extended its foothold in the Moscow market and continued to roll out supermarkets in new locations, opening stores in Novosibirsk and Yekaterinburg. In 2017, we successfully completed three landmark deals which have already strengthened our market position, enabling accelerated growth in the future. We are well on track to achieving our long-term goal of becoming a Top 3 food retailer in Russia and mostly rely on organic growth in our both formats”.
Lenta is the largest hypermarket chain in Russia and the country’s fourth largest retail chain. The Company was founded in 1993 in St. Petersburg. Lenta operates 231 hypermarkets in 83 cities across Russia and 97 supermarkets in Moscow, St. Petersburg, Novosibirsk, Yekaterinburg and the Central region with a total of approximately 1,382,477 sq.m of selling space. The average Lenta hypermarket store has selling space of approximately 5,600 sq.m. The average Lenta supermarket store has selling space of approximately 900 sq.m. The Company operates seven owned distribution centres.
The Company’s price-led hypermarket formats are differentiated in terms of their promotion and pricing strategies as well as their local product assortment. The Company employed approximately 40,400 people as of 30 June 20171.
The Company’s management team combines a mix of local knowledge and international expertise coupled with extensive operational experience in Russia. Lenta’s largest shareholders include TPG Capital and the European Bank for Reconstruction and Development, both of which are committed to maintaining high standards of corporate governance. Lenta is listed on the London Stock Exchange and on the Moscow Exchange and trades under the ticker: ‘LNTA’.
A brief video summary on Lenta’s business and its Big Data initiative can be seen here.
For further information please visit www.lentainvestor.com, or contact:
Public Relations and Government Affairs Manager
Tel.: +7 812 380-61-31 ext.: 1892
Anton Karpov & Victoria Afonina
Тel:+7 495 795 06 23
Leonid Fink & Victor Pomichal
Тel: +44 7497 783 705
1 FTE (full-time equivalent). Average FTE for 1H 2017 was 40,197 employees