Russia: Magnit turns existing hypermarkets into shopping malls and convenience stores

Olga Naumova, the Chief Executive Officer of Magnit, Russia’s second-biggest retailer said the company will stop opening stores larger than 4,500 sq. m. to focus on smaller stores. This capitalises on customers’ growing preference for neighbourhood shops. Magnit only has 7 hypermarkets and would turn existing “big boxes” into shopping malls by sub-letting space. Russian retail sales have been hit by a fall in real disposable incomes as the rouble has weakened, forcing retailers to re