22 January 2018

Lenta tests new self-service technologies

Saint Petersburg, Russia; 22 January 2018 – Lenta (LSE, MOEX: LNTA), one of the largest retail chains in Russia, announces a pilot launch of ITAB self-checkout counters and the Lenta-SCAN system for automatic item scanning at Lenta hypermarkets in St. Petersburg.

Lenta starts the year by launching a number of new projects aimed at improving customer experience through reducing time spent at the checkout counter.

ITAB TwinFlow checkout counters – first time in Russia
TwinFlow are unique self-checkout counters with conveyor belts and, according to the pilot results, can accompany MoveFlow checkouts installed and familiar to Russian shoppers in each new Lenta hypermarket. Unlike conventional self-checkouts where customers scan their items from one basket to another, TwinFlow checkouts are fitted with a conveyor belt which transports items to the bagging area.

The new checkouts will provide benefits such as reduced waiting times and considerably more comfort in the checkout area. Customers with a large number of items in their carts are the current focus of testing the checkouts, which can potentially serve two people almost simultaneously. The bagging area of TwinFlow checkouts is divided in two, so that one customer can bag scanned and purchased items without being inconvenienced by the next person beginning the checkout process. If efficiently designed, a self-checkout section based on the TwinFlow technology can serve two or three times as many customers as conventional checkouts.

TwinFlow checkouts are widely used in Western European and Scandinavian countries, producing excellent results. Lenta has become the first retail chain in Russia to launch a pilot project using the TwinFlow technology.

Lenta-SCAN is an innovative self-scanning system that takes customer interaction to a new level
Customers of three Lenta hypermarkets in St. Petersburg will have a chance to participate in testing an in-store self-scanning system using special hand-held scanners. In addition, hand-held scanners will highlight special offers and discounts matching individual consumer preferences.

As part of the project, 50 hand-held scanners were installed in participating stores, enabling customers to self-scan and bag all items while in the store. Eventually, all that remains is to pay for the items at a self-checkout point, thus considerably reducing the time spent on shopping. The scanners’ stand will provide a dedicated video tutorial, and the system’s intuitive, user-friendly interface will help customers learn quickly how to handle a scanner.

Lenta loyalty cards are used to identify customers in Lenta-SCAN, enabling the system to recognise customers and greet them by name, as well as offer personalised discounts and promotions. Information about available offers is displayed on the scanner’s screen, keeping shoppers up to date with relevant events. At its current stage of implementation, the system automatically breaks down special offers by product category or segment depending on individual shopping behaviour in-store, or when certain prerequisites are met. The system also informs customers of certain Crazy Day promotions and reminds them about their upcoming birthday while offering the opportunity to get an increased discount.

Edward Doeffinger, Lenta’s Chief Operational Officer, said,
“Excellent customer experience is a crucial element of competition in the Russian food retail market. We are strongly focused on this aspect, including by integrating modern technologies in our customers’ daily lives. We have simultaneously launched two projects testing new self-service technologies to assess their convenience for customers and examine their impact on shopping behaviours in-store. Regarding hand-held self-service scanners, we also find it important to explore new channels of personalised communication with our customers and study their efficiency along with customer responses. We will use the pilot project results to make decisions on further avenues of development for these initiatives.”

About Lenta
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 84 cities across Russia and 97 supermarkets in Moscow, St. Petersburg, Novosibirsk, Yekaterinburg and the Central region with a total of approximately 1,382,111 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:

Lenta
Maria Filippova
Public Relations and Government Affairs Manager
Tel.: +7 812 380-61-31 ext.: 1892
E-mail: maria.filippova@lenta.com

NW Advisors
Russian Media
Anton Karpov & Victoria Afonina
Тel:+7 495 795 06 23
E-mail: lenta@nwadvisors.com

FTI Consulting
International Media:
Leonid Fink & Victor Pomichal
Тel: +44 7497 783 705
E-mail: Leonid.Fink@fticonsulting.com
victor.pomichal@fticonsulting.com

1 FTE (full-time equivalent). Average FTE for 1H 2017 was 40,197 employees