Information technologies in Magnit retail chain
The article is devoted to the history of the creation and development of technological solutions in the retail network Magnet"."Main article: Thunder Chain Magnit stores
IT costs
2025: Magnit allocated 800 million rubles for the purchase and introduction of robots for the year
Since the end of August 2025, the Magnit retail chain has been implementing a large-scale technological modernization program, within which 25 automation projects will be implemented at 20 production sites over the next 1.5 years. The volume of investments in the program will exceed 800 million rubles.
According to the retailer's press center, the goal of the modernization program is to radically increase operational efficiency, productivity and product quality. The introduction of robotic solutions will redistribute human resources for more complex tasks, minimizing manual labor on monotonous operations.
Key areas of modernization will cover the main enterprises of the company, including the Kuban Bakery Plant and the Kuban Confectioner, located in the Krasnodar industrial park. Packaging lines will be automated here and new technological lines will be introduced to expand the range of sweets and marmalade. At the factory in the village of Novotitarovskaya (Krasnodar Territory), it is planned to install equipment for automatic frying and dosing of peanuts.
Significant changes will also affect the agricultural segment. In the greenhouse complex in the Kuban, robots for pruning plants and intelligent lighting systems will be introduced. This, according to the company's experts, will increase the yield of tomatoes by 15-18% while reducing energy costs.
| By combining all projects into a single program, we are consolidating resources and strengthening our focus on the speed of innovation, "said Anton Marushev, director of the Magnit agricultural and industrial complex. According to him, the company's goal is "to create production sites for reference efficiency in Russia." |
According to the press service of Magnit, 20 industrial industries and agricultural enterprises of the company produce about 500 products (from greenhouse vegetables to confectionery and semi-finished products), which are sold under their own trademarks of the network.[1]
2024: Magnit spent over 550 million rubles on information security and almost completely abandoned imported products
In 2024, the investment of the Magnit retail network in ensuring digital security amounted to 557.6 million rubles. Such data are provided in the company's sustainability report, which TAdviser got acquainted with in early August. In a similar report for 2023, the indicator of investment in information security was not given, so its dynamics is not traced.
It also says that the company is taking various measures to reduce the number of incidents in the field of information security. The set of these measures includes, among other things, the introduction of "latest technological solutions," automation of processes, and scheduled tests of IT security systems (inspections). The results of inspections in 2024 indicate the effectiveness of the Magnit security system: there are no significant problems, and non-critical shortcomings are promptly eliminated, the company assures.
In the reporting period, the development of secure development became a priority. Magnit developed a detailed methodology for developers describing information security measures, and also provided developers with self-test tools. The latter allow you to identify potential vulnerabilities in the code, such as the presence of unencrypted passwords, unsafe methods of accessing functions and other potential risks of incidents.
The implemented measures significantly optimized the development process: now developers can independently identify shortcomings at the programming stage and quickly eliminate them. This greatly accelerated the development process and eliminated the need to return to previous stages after the publication of the application. In 2024, self-test tools made it possible to identify and prevent over 30 thousand vulnerabilities of high and critical levels. In addition, the company has launched test training for developers on the basics of secure development.
Another important area of work in the company is called improving security in cloud environments. During the year, in collaboration with its cloud service provider, Magnit developed mechanisms to improve the security of infrastructure in the cloud. The result, according to the retailer, was the formation of a methodology for placing the company's services in the vendor's cloud space; You have also developed typical infrastructure requirements that apply to the deployment of new solutions. Due to the joint project with the provider, now the security tools, previously available only in the company's data centers, also function in the cloud space.
In addition, in 2024, Magnit implemented a number of information security projects, including:
- a project for cryptographic data protection on laptops of company employees - now, if a laptop is stolen, attackers will not be able to extract corporate data from the disk;
- Implement an EDR system to protect user workplaces from targeted, complex attacks and send instant notifications to the incident response team.
- Launch a body-based content filtering mechanism on a corporate email gateway to protect against phishing, so our users receive fewer phishing emails;
- publication of a new closed program on the Bug Bounty platform with a significantly expanded number of research participants who constantly test security systems for strength.
And in addition to the implementation of new projects, Magnit is scaling up current solutions. For example, in the reporting period, the action was expanded:
- SIEM - a tool for collecting and monitoring events from all servers, databases, computers and other devices in order to identify suspicious actions on the local network;
- Web Application Firewall - protection systems for mobile applications, sites, web interfaces;
- VM is a tool for identifying, analyzing and eliminating vulnerabilities in information systems.
Import substitution of foreign technologies in the field of information security has also become important. So, in 2024, Magnit implemented three new projects. The most difficult of them is the import substitution of the SIEM system: the company has postponed all the rules and set up new ones, thereby resuming the process of investigating cyber incidents using the domestic system. Magnit also switched to a domestic scanner for internal perimeter vulnerabilities and a scanner for external perimeter vulnerabilities.
At the time of the release of the sustainable development report, about 90% is the import substitution of the solutions used by Magnit, according to the information security section.
Plans for 2025 and the medium term include further import substitution of foreign solutions, including the implementation of a project to import substitution of the remote access system. It is also planned to introduce Zero Trust technology, when, before connecting a computer to a local network, it checks compliance with established standards, such as the presence of antivirus, visiting sites, installing the necessary updates, and so on.
History
2025
Putting the program on Standoff Bug Bounty into public mode
Magnit announced the transfer of its vulnerability scanning program, launched on the Standoff Bug Bounty site, to public mode. After the successful closed stage, which started in February 2024, about 30 thousand security researchers are involved in testing. For the implementation of especially dangerous scenarios, the company is ready to pay ethical hackers up to 250 thousand rubles. Positive Technologies announced this on November 25, 2025.
Cyber attacks remain a serious threat to business: according to a survey by Positive Technologies for quarters I-II, more than half of successful attacks on organizations lead to leaks of confidential information. The retail industry is among the top 5 attacked industries and is of particular interest to attackers because it processes large amounts of customer data.
Bagbounty programs allow you to identify vulnerabilities before they are exploited by cybercriminals. This is especially important in an environment where attackers seek to use legitimate tools to mask malicious activity.
| For us, security is not just about meeting standards, but about constantly making life harder for an attacker. We have built a multi-level defense, but we understand that the inside look is "blinkered." Bug Bounty's public program is our way to engage a global community of white hackers to find complex chains of vulnerabilities and logical errors that elude automated scanning. Each report from the researcher is an opportunity to eliminate a real threat before it is used, - commented Oleg Vladimirovich Lalaev, head of the data security and infrastructure department, Magnit. |
The launch of the public program will allow Magnit to check the security of its services with more than 30 thousand baghunters registered at the Standoff Bug Bounty site, with different experience and tools. The research area includes client and service resources of the retail network, including a mobile application (for iOS and Android), a delivery site, a loyalty portal, and other services.
In the open program, the company also increased the amount of rewards. Researchers can earn up to 120 thousand rubles for detecting bugs with a high level of risk. For identifying especially dangerous vulnerabilities, the maximum reward is 250 thousand rubles.
| Protecting retail infrastructure is critical. Distributed systems, hundreds of integrations and constant communication with external services make it an attractive target for attacks. Public bagbounty programs allow you to attract a wide range of researchers to search for vulnerabilities of different levels of danger. Thus, more than 37 million rubles were paid on our site within the framework of open programs of retail vendors. This format of cooperation gives businesses the opportunity to eliminate real technical shortcomings before they are exploited by attackers, "said Aziz Alimov, head of Standoff Bug Bounty. |
Magnit has launched smart scales at self-service checkouts. They themselves determine the product
The Magnit retail chain has introduced the technology of "smart" scales at self-service checkouts in convenience stores. The devices automatically recognize the product that the customer weighs, which reduces the time spent on this process and improves the quality of service. The press service of Magnit announced this on November 26, 2025.
The technology successfully works in large-format stores - Magnit Family supermarkets and Magnit Extra superstores. For the format of convenience stores, the solution will be adapted for self-service checkouts for the convenience of customers. This is the first application of the technology at self-service checkouts in small stores of the chain.
The principle of operation of "smart" scales is based on computer vision. The devices determine the product due to the built-in camera, which photographs the products placed on the weighing platform. The photo analyzes the neural network and offers the buyer the most likely options for goods. The system eliminates the need to manually find the desired position in the interface.
In 2024, the retailer tested the solution in a limited number of convenience stores. Tests were also carried out in the format of freestanding scales on the trading floor. As a result of the pilot project, it was decided to finalize the technology by integrating it into self-service cash desks. This has become the best solution for small shops.
The technology is tested with the participation of specialists from the innovative laboratory "Magnit at Home" "M-Lab." The division is engaged in the development and implementation of technology solutions to improve the operational efficiency of small chain stores.[2]
"Magnit" launched a payment service without a cash desk: purchases can be immediately put into a package in the store
The Magnit retail chain has launched a new way to pay for goods in a store called Cash in the Phone. The functionality allows you to make purchases as quickly as possible, paying for goods directly in the mobile application and bypassing the cash desks, the press service of Magnit said on November 17, 2025. Read more here.
Placement of digital displays with advertising and promotions
For the first time in Russia, the advertising platform Magnit ADS posted digital shelfbanners in the retailer's offline stores. This was reported by the press service of Magnit on October 14, 2025.
The platform offered a tool for targeted communication with the buyer immediately at the time of selecting the product at the shelf. The Digital Shelfbanner is a vertical display located on retail equipment.
The device is organically built into the client's route through the trading floor. It serves as an eye-stopper - an outstanding element of advertising that focuses the buyer's attention on current offers in the category of interest. The solution works for the bottom of the sales funnel. The technology can be integrated with advertising campaigns in the retailer's mobile app.
In September 2025, the company conducted an independent study of the perception of digital advertising formats in convenience stores in conjunction with Formen Consulting. The results of the study showed the effectiveness of the new advertising format.
The total number of contacts of one client with a new advertising medium was three times per visit to the store. The average customer contact time with the display reached seven seconds. These indicators indicate the high involvement of buyers in interaction with the digital format.
56% of respondents surveyed rated the visibility of the format and advertising on it. 40% of the study participants called the shelfbanner the most useful and convenient for obtaining information about goods and promotions. 72% of survey participants are in the Magnit chain of stores almost every day.
CEO Magnet ADS Lyudmila Marlier commented on the launch of the new tool. According to her, the ADS Magnet is the first in the retail media market to launch a solution that allows the advertiser to be in the consumer's focus immediately at the time of the purchase decision. The company sets new standards for retail, where advertising is noticeable, close to the individual needs of the client and directly affects the turnover.[3]
Magnit is testing age verification technology at self-service checkouts using the Max messenger
Magnit begins testing age verification technology at self-service cash desks (CSR) when selling goods with age restrictions. The company announced this on September 16, 2025.
The ability to purchase such goods without presenting an identity document will be available to users. MAX messenger To do this, you need messenger to bind the profile To Public services to and create a digital ID. To buy certain categories of goods, it is enough to scan the digital ID on the CSR in the form QR code that will be displayed on the screen smartphone in the MAX application, thereby confirming your identity.
To launch this functionality, the Magnit team finalized the self-service cash desk software and provided integration interaction with the MAX infrastructure.
The pilot project has already been launched in 10 stores: in seven near-home stores in Moscow and Krasnodar, in one V1 in the capital, as well as in two hypermarkets in Krasnodar and St. Petersburg. In the near future, the pilot will be expanded to more than 300 outlets in several cities of Russia. Testing will last three months, during which the company will regularly collect feedback from buyers to improve the user experience. The project can then be scaled.
Шаблон:Quote 'author=said Vyacheslav Kubaev Chief Digital Officer of Magnit Group of Companies.
Magnit has launched the most robotic warehouse of its network for 35 thousand items of goods. PHOTO
On July 1, Magnit announced the start of work at the Podolsk federal distribution center, which TAdviser visited. In the new FRC "Magnet" managed to achieve a robotization level of 30% - this is the highest figure for the company.
In total, Magnit invested 10 billion rubles in the construction of a distribution center near Podolsk. Of these, 500 million rubles were spent on building high-tech solutions, the company specified, answering TAdviser questions: the funds were invested in the creation of conveyor and robotic systems.
When designing a new warehouse complex, priority was given to robotization technologies of Russian development, therefore the share of domestic solutions in it is more than 70%. All solutions for the organization of warehouse logistics on the territory of the Podolsk FRC were developed and implemented by the full-cycle system integrator and equipment manufacturer Comitas.
| Today, the largest distribution center in Russia has been opened in the Moscow region, - said Roman Chekushov, State Secretary and Deputy Minister of Industry and Trade of the Russian Federation, at the opening of the federal distribution center. - The facility, located on more than 80 thousand square meters. m, allows you to ship 1 thousand tons of cargo per day with the prospect of expanding this volume to 3 thousand tons. This is a significant step to ensure stable food supplies to Magnit stores almost throughout the country. At the same time, the level of automation of the facility is already about 30%, while mainly domestic solutions are used. |
FRC "Podolsk" with an area of 86 thousand square meters. m. Designed for dry storage and distribution of food and non-food products. It is assumed that it will become a hub for the delivery of products to 41 regional distribution centers of Magnit, from which products are delivered to all stores of this retail chain throughout the country. At the end of 2024, it included 31,483 stores in 4,594 settlements.
The launched Podolsk FRC for the first time implemented technologies for robotic sorting of goods for the Magnit Cosmetic chain of stores, which already has more than 7.9 thousand points of presence in the country. To complete supplies to its stores, a five-tiered mezzanine with a total area of 30 thousand square meters. m. Up to 35 thousand items of goods can be stored and sorted here - from decorative cosmetics to household chemicals. The length of the robotic line exceeds 2 km, and it is designed to move over 60 thousand boxes per day.
| Everything regarding the mezzanine - rollers, robots, etc. - is produced by Comitas here in the Moscow region, - explained for TAdviser the situation with import substitution of Fedor Pavlovsky, Deputy General Director, Director for Supply Chains and Logistics of the Magnit retail chain. - The robots that we show at the exposition and which will be used to modernize the warehouse in Kolomna are also Comitas. The rest is China, but we are now working closely to replace them with domestic producers from different regions of Russia. If we consider the opened warehouse in volume, then 70-75% is what was produced in Russia. |
The Podolsk distribution center, in addition to the mezzanine with box picking technology (pick-by-store), also includes sorting areas for goods at the time of arrival at the warehouse (pick-by-line), which are used to pick up the assortment for 500 large-format supermarkets and convenience stores, as well as prefabricated delivery of goods from different suppliers - pooling - and others.
The current capacity of the RC is designed to ship 1.2 thousand tons of cargo per day, by the end of 2025 this figure is planned to be increased to 3 thousand tons. The logistics complex has 75 shipping gates and 75 acceptance gates, which allows you to simultaneously service 150 large-tonnage trucks. More than 1.1 thousand suppliers will ship their products to the new RC, of which 430 are local manufacturers.
In addition, the new distribution center is testing autonomous mobile robots (AMR) for transporting goods from the storage place to the configuration station, forklift mobile robots (FMR) for transporting goods, cleaning robots and other solutions.
To manage automated pipelines and devices, a new warehouse management system (WMS) has been introduced in the distribution center.
| It is very pleasant today to be here in perhaps the most modern, technologically equipped distribution complex in the Moscow region, "Andrei Vorobyov, Governor of the Moscow Region, said at the opening of the Podolsk FRC. - The capital region is growing, and everything related to distribution centers, logistics, Marketplaces occupy a very noticeable place in the economy of the Moscow region. Our task is to stimulate companies as much as possible so that enterprises that produce robots appear in the region. I want to thank Comitas - this is, in fact, the first swallow in the suburbs. Thanks to Magnit for not being afraid to introduce everything new (and here we see a noticeable share of automation), as well as for creating jobs. |
The AMR and FMR robots tested at the opened warehouse will continue to be used in the modernization of the distribution center (RC) in Kolomna, which is supposed to be launched in 2026. In it, on an area of 15 thousand square meters. m it is planned to organize a fully robotic storage system using more than 500 mobile robots, in which from the moment of entering the warehouse to shipment, human touches will be excluded.
For picking goods in the Kolomna RC, 16 points will be equipped, to which mobile robots will bring the goods necessary for picking, and employees will form pallets from them for shipment to retail stores of the chain. At the same time, the procedure for forming pallets will take into account the weight of goods and the strength of their packaging - filling planning will be controlled by specialized software.
Magnit plans to invest 5 billion rubles in logistics robotization by the end of 2026 - these funds will mainly go to modernize the RC in Kolomna. And the total investment in warehouse logistics in the Moscow region will exceed 40 billion rubles.
Allocation of ₽5 billion for the introduction of robots
Over ₽5 billion will be directed by retailer Magnit to introduce robotic solutions in logistics in the Moscow region. The company entered into a strategic agreement with the regional government and technology partner Komitas in June 2025.
The document provides for large-scale automation and robotization of Magnit distribution centers in the Moscow region. The first technological solutions will be implemented in 2025 as part of a phased modernization of the company's logistics processes.
MagnitMagnit CEO Yevgeny Sluchevsky said the Moscow region remains one of the key markets for the company. Sluchevsky noted the consistent expansion of its presence in the Moscow region with the opening of stores within walking distance for residents.
Sluchevsky stressed that modern distribution centers are becoming a platform for introducing new technological solutions. The head of the company announced an increase in the efficiency of supply chains and improved working conditions thanks to new technologies.
The agreement provides for the introduction of advanced technologies to optimize logistics processes from warehouse processing to sorting goods. Automation will affect the main stages of cargo processing in the retailer's distribution centers.
The project is being implemented with the participation of Komitas, a company specializing in the development and supply of robotic solutions for the logistics industry. As part of the agreement, it is planned to introduce 3D shuttles, automated stackers and high-performance cross-belt sorting systems, which will optimize cargo handling at the retailer's distribution centers.
Founder and Managing Director of Komitas Davit Manukyan stressed the importance of technological synergy of the project. Manukyan announced a huge potential for large-scale robotization in the Moscow region.
Manukyan noted that the signing of the agreement is not just a step towards modernizing logistics, but also an incentive for the development of local production of high-tech equipment. The project contributes to the development of domestic automation technologies.[4]
2024
Smart scales, AI for choosing cosmetics. Magnit reported on digital transformation projects for the year
In an annual report published in early June 2025, the Magnit retail chain reported on the main projects in the field of digital transformation. The Company introduces technologies to increase the speed of launching new products, optimize operational processes, conduct analytics of customer behavior and increase employee engagement, as well as increase customer loyalty.
One of the areas is projects aimed at developing the functionality of employees. Here, in particular, after the departure of international companies that provided tools for managing the life of the outlet, Magnit decided to focus on developing its own back office. The tool is developed on the basis of existing IT solutions of the company with a focus on improving the experience of employees of retail facilities. Applications are under development aimed at simplifying the main business processes of stores (reducing labor costs of employees); Unifying employee tools (single interfaces) flexible document management (primary documentation, claim work, collection, etc.)
The development of the back-office system makes it possible to reduce the burden on employees through an integrated approach to simplifying processes that connect all employee tools: the commodity accounting and commodity movement management system, the data collection terminal (shipping documentation), mobile printers, etc., Magnit states in its annual report.
Magnit also developed its own Enterprise Mobility Management (EMM) system. The goal of EMM is to build the optimal interaction of mobile devices operating in the IT infrastructure that affect the business processes of the enterprise. The technology allows you to remotely manage, configure and update store tools. The development of EMM technology reduces hardware downtime and reduces device inventory time.
Another area of the projects is aimed at improving performance when working with calculations - Image Recognition (IR) and On Shelf Availability (OSA). In order to increase the productivity of employees when working with the calculation, Magnit, together with a Russian partner, is developing a technology for diagnosing "shelf health" - Image Recognition. A solution based on neural networks allows you to determine in less than a minute which product is missing on the shelf, in what priority to set it, which price tags have lost their relevance and need to be replaced.
The application allows you to quickly collect analytics on real availability of more than 20 thousand. SKU on the shelf. At the first stages of the project implementation, revenue growth amounted to 2.4% due to maintaining the quality of the product display. The development of the project is also aimed at increasing the density of sales due to an increase in the efficiency of daily operations when working with calculations: the application provides modules for monitoring planograms, working with non-delivered goods, checking the correctness of price tags. The technology scales to a network of large formats, convenience stores and drogerie.
And since November 2024, a solution of its own design has been launched on the entire chain of stores near the Magnit house to increase the availability of goods on the shelf using OSA signals. Thanks to an advanced algorithm system, signals are sent to the store every day for goods that are not available to the buyer. Employees receive signals, the development of which will bring the greatest growth in turnover in a particular store. To work out signals in the store, a convenient interface was created in the shipping documentation, which allows not only to identify the problem, but also to quickly fix it. For example, printing the price tag instantly significantly reduces the labor costs of employees.
Integration of the IR and OSA system is planned in 2025 to achieve greater business effects.
In 2024, the company also actively worked with the optimization of process weighting by digitizing the actual load of 1.5 thousand operations performed by employees on a daily basis. The assessment was carried out in all network formats, which made it possible to create digital twins in 184 processes. Based on the obtained data, drivers have been identified that allow you to manage the standard load on employees when implementing typical tasks and implementing new processes.
The company has also created a digital time accounting technology QR-Link, which allows you to obtain accurate and objective data on the actual working time of employees. The solution allows you to make the calculation of wages and additional payments more transparent and understandable for the staff. In addition, the technology improves the quality of accounting and reduces the burden on administrative personnel, including by completely automating processes. In 2024, the tool was scaled in all network formats. From 2025, it is planned to use QR-Link for accounting and external employees (outsiders, cleaning, merchandisers).
Projects aimed at developing the client service are highlighted in a separate direction. Among them are smart scales with Clever Lever product recognition technology. In the reporting period, Magnit completed a project to equip large formats with smart scale technology: customers can use the service in Magnit Extra and Magnit Family throughout the geography of the network. The system recognizes the entire range of weight products. This is more than 800 SKU in categories such as fresh and frozen fruits and vegetables, sweets, semi-finished products, seafood, snacks, etc. The technology is used for goods in transparent packaging (polyethylene bags, nets or avos). The recognition accuracy is 98%, while the system is self-learning, remembering the choice of the buyer when weighing the goods.
The company also launched a pilot of smart scales in Magnit at Home stores. In addition to reducing weight transfer, in a small format, the technology allows you to remove the load from the cashier, reducing the time for adding weight products to the check by six seconds.
Another project in this portfolio is BeautyScan cosmetics selection technology. Developed with the support of the Moscow State Medical University named after I.M. Sechenov, the BeautyScan service allows customers to learn more about their skin and choose products that meet their needs as much as possible. The service uses modern AI algorithms to analyze photos and user responses. The buyer receives his portrait with the designation of problem areas and an individual skin care plan.
BeautyScan recommendations are based on products from the Magnit Cosmetic line, including new products from the range and exclusive brands. The company plans to expand the service to 2.5 thousand stores, include in the service system the selection of decorative cosmetics and the choice of perfume.
Magnit also continued to digitalize its work with price tags. It allowed store employees to flexibly manage marketing tools on the shelf. The project made it possible to reduce labor costs and redistribute the burden on staff and increase sales, including by broadcasting dynamic advertising on media shelves. In 2024, the project was implemented in three network formats. Updating one price tag takes up to 10 seconds, while there is a possibility of dynamic pricing.
As for technologies to increase customer loyalty, here, for example, Magnit is developing its own Forecasting & Replenishment (F&R) system for predicting demand and planning orders. The advantages of Magnit's own F&R solution are 100% ownership of source code, a single interface and the ability to work in a single window, the annual report says.
Here is the creation of a retail technology laboratory for testing new solutions and improvements in the operating model of retail outlets. Magnit expects that the laboratory will increase the number and speed of experiments to scale successful hypotheses over the entire network. For example, on the basis of the laboratory, a new approach to the formation of an assortment based on modern AI models, optimization of the discreteness of supplies, mechanisms for auto-ordering goods, and the creation of digital store twins are being tested.
Magnit is increasing the use of robots amid a shortage of labor resources
In 2025, the Magnit retail chain will continue to test new technological solutions in federal distribution centers (FRC). In particular, it is planned to conduct tests of the robotic board to replace the sorter on the discharge hose from the conveyor. The company reports this in its annual report, published in early June 2025.
It also says that 2025 will be the year of the introduction of the first fully automated work site in the Kolomna distribution center (RC). This will increase the capacity of the pickers and the storage volume at the DC. In 2025, it is planned to launch 3D shuttles, autonomous mobile robots (AMR) and automated forklifts (FMR) there.
As of June, technical tests of various floor automation (AMR) models based on the Kolomna RC have already begun to check the reliability and effectiveness of using the Product to Person technology.
In addition, tests of inventory drones were carried out at the Kolomna RC and the Astrakhan RC. Verification of storage places with scanning of pallet barcodes in operating RC with measurement of performance and recording of measurement errors was carried out. Now it is planned to finalize the economic model and confirm the effectiveness of this model for making a decision on scaling.
In 2025, there are also plans to introduce a warehouse equipment monitoring system in the RC. Automation of routine processes related to the use of warehouse equipment and digitalization of equipment operating parameters reduce costs, positively affect industrial safety and contribute to compliance with labor safety rules. In the first half of 2025, Magnit expects to launch this system in two pilot RCs to confirm the economic effect before scaling.
In the reporting year 2024, the company actively studied and tested various modern technologies in the field of robotization. For example, six different models of robotic breakdown machines were tested and devices were selected with maximum efficiency. It is planned to equip the RS with robotic breakers and conduct pilot tests to confirm economic efficiency and scaling.
Back in 2024, Magnit developed the concept of a robotic RC based on existing objects and received sketches of the topology of automated RCs. And in the near future it is planned to receive the developed concepts of new robotic RCs.
At the time of the release of the annual report, the most robotic warehouse of Magnit is the FRC in Podolsk, where the most modern technologies and equipment are used:
- The Pick-to-light (P2L) system for box storage area pickers is designed to improve the quality and speed of tapping due to the illumination of the container carrier during multi-assembly. Based on the pilot operation in the FRC, a decision will be made to scale the system.
- Pick-to-light trolleys are a reliable means of selecting small goods with a light hint for the picker. In 2025, it is planned to develop the system through improved selection visualization.
- Voisman voice selection system. Integration with the new warehouse management system (WMS LT) has been developed, functionality has been adapted for Magnit business processes for boxed and single-piece packaging in racks. The system is compatible with most voice selection equipment, has an extended language pack, and supports additional equipment.
The expansion of the use of robotization technologies is especially important against the background of a shortage of personnel, including in retail. The shortage of labor resources in 2024 became one of the main issues of interest to Magnit investors and analysts. The company in its annual report states that in 2024 the demographic situation worsened, the demand for personnel from the booming Russian business grew rapidly and entailed a significant shortage of employees in the market and their redistribution between sectors of the economy. Magnit felt it on itself, but the network managed to cope with this challenge and maintain a high staffing level of 96.2%.
Magnit has developed and implemented its own Magnit Devices smart controllers for controlling light, air conditioners and refrigerators in stores
The Magnit retail chain has created its own Magnit Devices controllers for automated management of retail equipment as part of the Smart Store project. The development of devices was carried out on the basis of the IT & Maintenance Lab in Krasnodar in 2024. This became known on November 28, 2024. Read more here.
The working hours of Magnit employees began to be controlled using QR codes and smartphones
On August 13, 2024, Magnit, one of the largest retailers in Russia, announced the start of testing a new digital clock system for its employees. This solution, implemented on the basis of an internal mobile application, is aimed at improving the accuracy of time recording and ensuring greater transparency in payroll calculations.
According to Magnit, the essence of the innovation is that store employees must now log in to the mobile application and scan the QR code from the store director's work computer at the beginning and end of each shift. Such a system allows you to obtain objective data on actual working time, which not only simplifies the payroll process, but also helps to reduce the administrative burden.
Pilot testing of the new technology covers more than 60 outlets, including convenience stores, drogeries and supermarkets. It is expected that according to the results of testing, which will last until September 2024, a decision will be made to scale this technology to all stores of the chain. This will allow Magnit to improve time management and improve the efficiency of labor processes.
| Digital time recording technology QR-link allows you to obtain accurate and objective data on the actual working time of employees. This decision will help make the calculation of wages and additional payments more transparent and understandable for employees, as well as improve the quality of accounting and automate processes, - emphasized the importance of introducing this system, Director of the Retail Technologies Department of Magnit Eduard Iryshkov. |
By the beginning of 2024, the Magnit chain included 29,165 stores that operate in 4,287 settlements of Russia and Uzbekistan.[5]
Create a laboratory to test solutions and enhancements in the point-of-sale operating model
Magnet"" created a laboratory on the basis of 20 stores to test solutions and improvements in the operating model trade of points. This model of testing innovations will increase the number and speed of experiments to further quickly scale successful hypotheses throughout the network. This was announced Magnet by "" on July 8, 2024.
To create the Retail Technology Laboratory, convenience stores were chosen. When forming a pool of stores, such criteria as turnover, location, redesign factors, etc. were taken into account. The selection was carried out in such a way that the tested hypotheses could be applied to the entire network. As a result, 10 outlets in Moscow and Voronezh entered the contour of the laboratory.
The hypotheses that Magnit is testing within the framework of this project relate to the organization of personnel work, the formation of an assortment, the management of commodity flows and losses, as well as calculations, pricing and other processes that affect the turnover and efficiency of stores. For example, on the basis of the laboratory, the company is testing a new approach to the formation of an assortment - based on artificial intelligence models that take into account detailed analysis of buyers, demographic factors, geoanalytics, the potential of locations, etc. Other experiments include optimizing the discreteness of supplies, adjusting the mechanism for auto-ordering goods, creating digital store doubles to improve the efficiency of operating process management, and much more. As of July 2024, the lab is investigating more than 25 hypotheses across the full spectrum of daily outlet operations. When choosing hypotheses, laboratory specialists focus on the needs of Magnit's key business functions and work closely with colleagues from various departments: commerce, IT, human resources, etc.
{{quote 'author=said Ekaterina Vinogradova,
Director of the Laboratory of Retail Technologies of the Magnit Chain. |
Retail is rapidly changing, and the rate of change in the industry is only increasing over time. Therefore, it is more important than ever to quickly and flexibly adapt to the external environment, to the buyer, improve, implement modern business processes and technologies in retail outlets. To do this, we created the Retail Technology Laboratory, which included 20 stores. Based on them, we will be able to experiment, quickly conduct tests, improve the experience of our customers and, based on the test results, implement new approaches and solutions throughout the network. Our job is to make our stores the most attractive to customers. Together with all the functions of Magnit, we test and offer effective solutions for optimizing key business processes based on digital models of stores, big data, AI and other modern technologies,}}
Creation of AI.Lab AI Laboratory
On April 18, 2024, Magnit announced the launch of an artificial intelligence laboratory. Specialists of the structure called AI.Lab will develop and introduce AI technologies into the retailer's workflows. Read more here.
Magnit will install 27 thousand new CSRs
Magnit is embarking on a new stage in the large-scale introduction of self-service cash desks (CSR) in its network. By the end of 2024, the company will install 27 thousand. CSR. The project will cover more than 7 thousand Magnit stores "at home," including retail outlets with their own baking department. The company announced this on March 14, 2024.
As a result, by the end of 2024, about 30% of near-home stores, as well as 95% of large-format stores and 10% of Magnit Cosmetic drogerie stores, will be equipped with self-service cash desks. In total, almost 40 thousand will work in the stores of the network. CSR.
The company equips stores with self-service cash registers from Russian vendors. In 2023, Magnit, together with partners, successfully tested the equipment and debugged the processes of its installation and maintenance. All CSRs will run on software developed by the Magnit team in 2023. This will allow you to flexibly manage changes in user scenarios, quickly implement new functionality and integrate interface design into the overall ecosystem of the company's digital products.
The use of CSR allows you to improve the quality of service in stores, increase customer traffic and staff efficiency. Currently, about 12 thousand are installed in Magnit stores. CSR. Self-service cash desks are used by 30% of buyers of Magnit stores equipped with them "at home," up to 25% of buyers of Magnit Cosmetics drogerie stores and 50% of buyers of large-format stores.
2023
Magnit launched a company to develop IT solutions
On November 13, 2023, Magnit announced the launch of M Lab, in which the retailer will test new equipment and software, develop and implement new scientific and technological projects aimed at improving the efficiency of operations in stores. In addition, the new project will become a platform for mitapes, hackathons and other events that will contribute to the introduction of innovations in Magnit's business. Read more here.
Installation plan for 10 thousand self-service cash desks
On October 12, 2023, Magnit announced that it would install more than 10 thousand self-service cash desks (CSR) in its stores. They allow you to improve the quality of service and improve the efficiency of stores.
CSR installation is planned in stores of all formats, primarily in large cities and locations with seasonal tourist traffic (for example, in resort cities in the South of the country). Most self-service cash desks - about 7.5 thousand - will appear in Magnit stores "at home" and soft discounters "My Price." About 2 thousand more CSRs will be installed in supermarkets, superstores and small-format stores with their own bakeries. Drogeri Magnit Cosmetic stores will be equipped with more than 200 CSRs. Currently, about 3 thousand CSRs are already operating in the stores of the Magnit retail chain.
After the departure of large suppliers of cash registers from Russia, the market is actively reorganizing, the number of companies specializing in the assembly of cash registers at Russian factories or direct supply of equipment from large Asian enterprises is growing. Magnit found a replacement for the departed suppliers, starting to collaborate with several vendors to evaluate various solutions and choose the optimal ones. Service quality is the priority of the company, so the selected equipment is not inferior in functionality to cash registers from previous suppliers. For example, in all stores where CSRs are installed, customers will be able to check the shelf life of dairy products using the Honest Sign labeling system. With comparable functionality, the new CSRs turned out to be several times cheaper than previously purchased analogues. At the same time, since the main quality of self-service cash desks is the ability to make quick purchases, user scenarios will be optimized in the established CSR and the number of operations requiring assistant intervention will be reduced.
The company has already tested self-service cash desk data in a pool of small format stores. The results of the pilot project showed that these stores have become better at dealing with consumer traffic during peak hours, and the number of employees involved in cash register operations has decreased.
Earlier, Magnit developed its own software for self-service checkouts. It is planned that the software created by the retail network's IT team will be installed on about 30% of new CSRs.
As of October 2023, self-service cash desks are used by 30% of buyers of Magnit stores equipped with them "at home" and 23% of buyers of Magnit Cosmetic drogerie stores. The company expects these indicators to grow significantly as CSRs scale up and their functionality improves.
Creation of a B2E TechLab with Rostelecom
Rostelecom and the federal retail network Magnit are creating a technological laboratory B2E TechLab to launch new digital solutions and products in the retail sector. Rostelecom announced this on April 18, 2023.
B2E TechLab (business to enterprise, big business segment) is a technology partnership format focused on a specific industry. An integrated team of Rostelecom and Magnit specialists will work at the laboratory site.
The laboratory will identify and test promising initiatives and developments necessary for the development of Magnit's business, speed up the introduction of technologies into the company's operational processes and allow it to enrich data geoinformation systems partners. The project perimeter will also include market research, documentation development and training support for employees implementing solutions using the Rostelecom IT telecom infrastructure.
| A deep understanding of industry needs remains an important factor in long-term and trusting customer relationships, turning them into mutually beneficial partnerships. It is especially important that we are launching the first technological laboratories in retail, an industry that is changing very quickly and continuously introducing innovations. The trust partnership will allow filling the market with national products and solutions that ensure the technological sovereignty of the industry and the country, - said Alexey Podryabinnikov, Vice President, Director for Corporate Customer Relations at Rostelecom. |
| Cooperation with Rostelecom will allow us to jointly determine growth points through research of technological trends, focus on business needs, reduce cost and improve the quality of solution search, develop technological sovereignty and competencies of our teams. Retail is a high-tech business, and all the solutions that we are introducing are ultimately aimed at improving the supply of goods and services for our customers, "commented Ruslan Ismailov, Deputy General Director of the Magnit retail chain. |
Launch of the Pitonchik program together with Synergy University
Magnet"" and the university "" Synergy are launching a digital professional guidance program for children left without parents and children with disabilities. Participants of the Pitonchik program will receive language skills. programming Python Magnit announced this on March 30, 2023. More. here
Launch of an aggregator for the supply of farm products to shops, restaurants and hotels
On February 7, 2023, Magnit announced the launch of an aggregator for the supply of farm products to stores, restaurants and hotels. The retailer is implementing this pilot project together with the government of the Tula region.
The aggregator platform assumes not only the availability of physical infrastructure for centralized supplies of farm products, but also the provision of specialized services. Products from farmers go to the regional hub, here they are processed (washing, packing, packaging, etc.), then they are sent either to the nearest distribution center, or directly to stores.
The aggregator provides advice to farmers on the production and sale of products, support programs and receiving subsidies, provides analytical data, co-finances the purchase of raw materials (seeds, fertilizers, feed) and equipment, trains farm employees, provides support in product labeling, etc.
By February 7, 2023, 36 farmers are already working on the basis of the first aggregator, which Magnit launched in the Tula region. Their products are consolidated and processed at a specialized site, after which they are sent to the chain's stores. The range of products supplied includes milk and dairy products, meat gastronomy, fresh fish and vegetables. As part of the pilot, Magnit concludes simplified contracts with farmers. In addition, the company has formed separate processes for accepting products at the distribution center and in retail outlets. Logistics of farm products is carried out by the company's transport, and special shelves have been allocated for it in the stores of the region.
Together with Tula farmers, Magnit works out business processes at the stages of transportation, processing, storage and sale of goods, develops standards for farm products. The retailer is testing IT solutions for order planning, transport management, etc.
Implementation of technology to block the sale of expired products
Magnit has introduced a technology for blocking the sale of expired products at cash desks. The retailer announced this on January 16, 2023. Read more here.
2022
Implement a video system to check the correct location of goods and balances in warehouses
On November 28, 2022, Magnit announced a large-scale implementation of a video system that checks the correctness of the location of goods and balances in warehouses.
After pilot tests of the technology, it was decided to launch it in thousands of outlets of all major formats - in Magnets at home, supermarkets and Magnit Cosmetic stores.
The neural network underlying the system recognizes images of goods on the shelf from the photo and controls the compliance of the product layout on the racks with the declared plan-diagram (planogram). Verification accuracy reaches 99%, the retailer said. The system analyzes the availability of the necessary goods and their balance in the store warehouse, the layout sequence, the location of the items on the first line and other indicators. If errors are detected, the personnel receives prompts to the mobile application to correct them.
Previously, employees independently compared the schemes with the calculations made, which took more time, and the accuracy was not high enough. The new technology allows you to reduce their labor costs for controlling the calculation. As part of the pilot, the time that the employee spends on checking the calculation was reduced from one hour to an average of 15 minutes. In the stores participating in the testing, thanks to intelligent control of the calculation, a sales increase of 0.6% was recorded
By the end of November 2022, automated monitoring of calculations covers three product categories: coffee, care and hygiene, products for animals. From January 2023, new categories will be connected to the system, including tea, baby food, alcohol, snacks, dairy products, confectionery, household chemicals and others.
{{quote "The new technology will allow us to increase the efficiency of employees, free up part of their time, quickly eliminate errors when filling the shelf and, ultimately, increase the availability of goods for our buyers," said the deputy head of Magnit Ruslan Ismailov. }}
Magnit has opened a new office for IT employees in Moscow, which operates 24/7. PHOTO
In July 2022, Magnit showed its new office in Moscow, where mainly employees of its IT team work. TAdviser visited this site. In total, Magnit has about 3.5 thousand. IT professionals, including developers, testers, analysts, project and product managers, plus about 500 more support employees. The large team is distributed in different cities of Russia, and many employees work remotely or in a hybrid format.
To the new office, located in the Bolshevik business center on Leningradsky Prospekt, the Moscow team of Magnit recently moved from the office on Tverskaya. She rents office space with a total area of 3 thousand square meters. m. In one of the buildings with a full range of services from the business center, including cleaning and catering.
The office operates on the principle of coworking. It has 319 fixed workplaces. Each of them is numbered, and in a special system you can see which of the employees on a specific day in which workplaces works. You can work both from your laptop and using stationary computers, if the tasks require it.
There are no offices in the co-working space. There is an open space with workplaces and more than 30 meeting rooms with a capacity of 4 to 12 people, which can be booked in advance. There are also telephone booths.
All over the office there are cells for storing personal belongings, there are more than 650 of them in total.
One of the zones is a test zone. There is equipment for testing various developments. And some of them, for example, vending machines, are also tested in the kitchen.
There are 3 printer areas in the office. To print or scan a document, the employee needs to attach his/her pass.
The office has 4 entrances with wardrobes - welcome-zones to distribute employee flows.
There is also a lounge area with table football, a game console, board games. There is also a shower cabin.
The office operates 24/7. Magnit emphasizes that all conditions have been created here so that employees can work with maximum comfort at any time. Some of them like to come to the office and on weekends, they say in the company.
| IT professionals are very picky. When employed, they often want to see where they will work. And having a comfortable office is a big plus in favor of choosing a company as an employer, Magnit notes. |
Coworking Photo Gallery
All photos in the material except the first: TAdviser
Magnit assessed its dependence on imported IT and outlined an action plan after the departure of vendors from Russia
Yuri Misnik, Digital Director of Magnit Retail Chain, at a meeting with reporters on July 27, spoke about how widely foreign IT solutions are used in the company, and how it will act in view of the withdrawal of developers of these solutions from the market. The main thing from which Magnit comes in this case is that a large retailer like him cannot afford to make sharp movements and refuse any decisions in one day.
For example, about 60 thousand people use Microsoft 365 services in Magnit, and it is very difficult to quickly transfer users to a new solution. The same applies to systems that support business, customers.
When foreign IT suppliers began to leave Russia since the end of February 2022, Magnit was played by the fact that by that time more than 70% of its systems were already its own developments and Russian products. At the same time, of course, the company depends on foreign decisions, notes Yuri Misnik. In addition to Microsoft, Magnit uses both SAP and Oracle, Cisco, VMware.
The retailer is trying to minimize the use of these products, on the one hand, and on the other, to take a very conscious approach to what it uses. For example, in the case of Microsoft 365, there are no analogues with the ecosystem at the same level yet. At the same time, Magnit has a good relationship with this vendor, and there is a contract. This allows you to continue to actively use its software and not destroy the internal client experience, while looking at alternatives, which can then be smoothly switched to.
| We have a very good, commercially profitable three-year contract for us with Microsoft, which we signed in the fall of 2021, "said Yuri Misnik, answering TAdviser questions. - And Microsoft has confirmed that they will fulfill all the conditions under the current contract and will support us. |
The company also has a significant number of Cisco products.
| It is good that we did not use Cisco as software-managed components, we used traditional "iron" complexes for our network infrastructure. This eliminated the risk that at some point we might just shut down our entire network, says Magnit's digital director. |
Magnit looks at Russian solutions to replace Cisco, but they are not yet too widely represented: "there are few companies in Russia that make their routers, routers for the scale of our trading network."
The company also looks at Russian virtualization solutions, and also experiments with Open Source. VMware, whose products are used in Magnit for virtualization, has left Russia, and the retailer is no longer receiving updates.
In addition, the analyst at Magnit is based on Teradata products, and she also stopped working on the Russian market. The already purchased hardware and software continue to work, but there were questions of support and configuration. Magnit has already begun a large project to transfer data warehouse from Teradata to a cloud solution.
In the past 3 months , work with the Ministry of Digital Development and other government agencies within the framework of working groups on import substitution of software in retail has also become very important for Magnit. For example, the company wants Russian ERP to be developed, which would replace SAP in large retail.
There is a "1C," and this is a good system, but if you use it on the scale of Magnit or other large retailers in Russia, there is a lot to finish there, says Yuri Misnik. According to him, the company is now actively communicating with 1C so that this process takes place.
| Big retail is quite unique, there is not so much of it in Russia, on the one hand, and on the other hand, it represents a challenge for classic software complexes for scaling, control when it comes to our scales, "said Yuri Misnik in a conversation with TAdviser. |
There are also a large number of niches in retail, for example, a warehouse management system, a forecasting and replenishment management system, where you want Russian box solutions.
| We and other retailers in Russia are ready to potentially unite and help vendors create solutions, maybe based on Open Source, so that everyone benefits from this development, "said the director of digital technologies. |
The ERP issue remains one of the most pressing at the moment. In 2020, Magnit began a large-scale ERP transformation program based on SAP. The company then said that within five years they expect to spend about 8 billion rubles on it. However, against the background of the SVO of the Armed Forces of the Russian Federation in Ukraine, SAP first stopped sales in Russia, and then completely announced plans to curtail business in the country by the end of 2022.
In this regard, Magnit, after thinking for a couple of months, decided to strategically continue development in the same paradigm - on the basis of SAP, although they somewhat changed the modules being implemented. For example, HR changed their mind about doing on SAP, this function will continue to work on the basis of "1C" using its own development. However, the main ERP system, including financial management, reporting, and back office will remain on SAP. All the necessary licenses for this have already been purchased.
| What we still like about SAP is that there are very pronounced key business processes that can be taken from the box, and there is a very abstracted customization layer from the kernel - ABAP, which allows you to configure the system without touching the kernel. Thus, at the end of the implementation, you do not find yourself with your own version of SAP: you have SAP plus customization, "Magnit's digital director told TAdviser. - And in the case of "1C," although the system is good, the situation is not so simple: there is a great temptation, and we have encountered this in previous years, to predastomize "1C" to such an extent that a certain hybrid with "1C" is already obtained. And this causes difficulties with support, updates, etc. |
From January 1, 2023, it is planned to launch a financial management system on SAP in production. At the same time, it will work in the cloud on the basis of a Russian cloud provider. More cloud use is part of the company's strategy. It is planned to transfer 20-30% of all systems to them by the end of 2023.
Yuri Misnik expects that the success of the SAP project will be facilitated by SAP Magnit's own competence center, which can also provide support. He told TAdviser that the company plans to increase the competence center team to more than a hundred people. Now, he says, the SAP team is a combination of partners and own employees.
| For the first couple of years, 95% of this resource was accounted for by partners and 5% - by our employees, and now we are changing this proportion in order to increase our competence. And we see that the SAP market is "refreshed": you can find good specialists for reasonable money, "said Yuri Misnik, answering TAdviser questions. |
Installation plan for 1,500 Russian self-service cash desks
On July 14, 2022, Magnit announced that it would install 1,500 Russian self-service cash desks.
By the end of 2022, the company plans to equip 1,000 stores at home on different geography with self-service cash desks (CSR) of Russian production and bring the total number of such terminals in the network to almost 3,500. Domestic devices for self-payment of purchases are 1.5 times cheaper than foreign analogues, while it is better customized for the needs of Magnit.
Self-service terminals will be installed in retail outlets where there are regular bursts of traffic, and the share of non-cash payments exceeds 60%, while there is no free space for expanding the cash area. For customers, the most comfortable user interface is implemented, identical to what customers are accustomed to. At the same time, self-service cash desks are supplemented with a voice assistant, which prompts an algorithm of actions, for example, when scanning labeled products, which reduces the load on store employees.
In addition, the terminal interface is lightweight for internal users, it is intuitive and does not require a lot of action. So, for example, earlier, employees needed about 1.5 minutes to close the shift at CSR, now only 40 seconds.
As of July 2022, about 2,000 self-service cash desks have been installed in Magnit stores of various formats. The company has been developing this service since 2014. In stores where CSRs work, an increase in staff productivity by 4%, a decrease in queues by 20% are recorded.
| Many buyers are more convenient to pay at self-service checkouts, on average, such customers are almost 1.5 times more likely to visit outlets with CSR. Therefore, we continue to scale self-shopping solutions and bring their functionality as close as possible to the needs of customers. We see a large range of advantages in partnership with domestic developers of CSR terminals: in addition to significant savings in the purchase of equipment, it allows us to significantly reduce the speed of introducing improvements in the functionality of cash registers, faster supply devices to stores and carry out their service. said Ruslan Ismailov, Deputy General Director, Director for Management of Magnit Retail Chain.
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Joining the initiative to test unmanned logistics corridors
Magnit on July 8, 2022 announced its joining the initiative to test unmanned logistics corridors.
The retail network, along with other logistics and transport companies, signed a single program of the experimental legal regime (EPR) for the implementation of the Unmanned Logistics Corridors initiative on the Neva M-11 highway. The corresponding initiative was submitted to the Ministry of Economic Development of Russia. The formation of the program was supported by the Ministry of Transport of Russia at the site of the Association "Digital Transport and Logistics." The adoption of the EPR is expected in the fall of 2022.
By 2024, an unmanned logistics corridor will be launched on the M-11 highway. The introduction of EPR will allow for three years to test digital innovations in freight transport, including the design, production and operation of highly automated vehicles (VATS) and infrastructure for them, the development of services for the provision of transport and logistics services in the field of unmanned freight transportation.
The peculiarities of EPR were the use of not only a "smart (unmanned) car," but also a "smart road," as well as a wide range of participants - representatives of all elements of the transportation chain. The development of various technical solutions and business models of freight traffic on the M-11 will make it possible to scale the project to other routes as soon as possible and with the lowest costs from the state and business.
In the future, the use of unmanned vehicles on public roads will increase traffic safety, contribute to the creation of new types of commercial activities, reduce the cost of remuneration for drivers by 30% until 2025, for fuel - by 28%.
{{quote 'author=said Dmitry Bakanov, Deputy Minister of Transport of the Russian Federation. | Implementation of this technology is always a risk, including from a security point of view. It is necessary to find a balance between the interests of the developer (the pace of technology introduction) and the interests of society (security). By adopting the EPR, the state assumes legal risks, and this will allow the start of the operation of trucks in unmanned mode on prepared transport and logistics corridors, without waiting, or, more precisely, together with the development and adoption of more regulations. Also in the BLK project, the state provides funding for the creation of smart road infrastructure - digital and non-digital, necessary for the safe operation of trunk cargo drones. We are confident that the business will pass its part of the way: it will ensure the development of unmanned trucks and the development of models of unmanned cargo transportation. It is important that the regulation follows the technological and organizational processes for the operation of the VATS,}}
{{quote 'author=noted Fedor Pavlovsky, director of supply chains and logistics at Magnit retail chain. | Delivery by self-driving trucks in real conditions is the only opportunity to test the stability of business models, in practice confirm the economic prospects of this area. We see great potential for unmanned trucks as a tool for significantly reducing the cost of transport logistics by automating regular cargo transportation in trunk routes. Their operation will reduce the burden on the ecology of roadside areas by reducing fuel consumption, as well as increase road safety. The introduction of unmanned cargo transportation in supply chains is essentially a new stage in the evolution of logistics processes, }}
"Unmanned logistics corridors" on the M-11 is a pilot project. The task approved by the Russian Government is to make 19.5 thousand kilometers of Russian public roads unmanned by 2030. Technological, organizational and business solutions that will be worked out within the framework of the EPR at the M-11 will form the basis of future transport and logistics corridors, and regulations for the creation, certification and operation of VATS and road infrastructure.
Launch a recruiting center to find and engage IT professionals
The Magnit retail chain announced on May 18, 2022 that it had launched a specialized recruitment center to search for and attract IT specialists. Hiring such employees requires certain knowledge and skills, so as part of the creation of the center, the retail network opened a school of resellers - specialists in the search and selection of resumes, as well as regular analytics of the IT industry. HR experts conducted more than 8,000 technical interviews and closed about 1,500 positions in the parent company in IT development and others high-tech destinations: Data Science, corporate architecture, analytics and testing.
Magnit also introduced a referral program that provides payments to employees who recruited IT specialists to work for the company. As a rule, this applies to vacancies with a deep level of expertise. A total of 684 people were recommended, 171 specialists were employed.
In May 2022, the retail network has about 4,000 IT specialists in different regions of the country. Within the framework of a specially created value proposition for IT specialists (Digital EVP), the company is implementing 19 HR projects. Among them are the creation of 5 competence centers (1C, Backend, Cloud, DevOps, Mobile, Integration), as well as the development of knowledge bases with professional literature for various tech communities of Magnit. For candidates from the IT sphere, a separate site magnit.tech has been launched, which contains all the company's profile vacancies. On the basis of the Corporate Academy there are IT faculties of managerial and technical competencies (development of soft skills and expertise on all current technology stacks: Go, Java, Python, IOS, Android, DevOps, JavaScript, etc.). About 2,500 people have already undergone additional training. At the same time, any employee can use the corporate library (more than 100 video courses, more than 150 cognitive simulators, 3500 e-books on different directions).
| The development of the IT direction becomes important in 2022. We closely monitor market trends and respond flexibly to applicants' requests. Taking into account the scale of our activities, we offer IT specialists special tasks, as well as excellent opportunities for career and professional development of the Magnit retail chain. For each position, we form tracks that help employees choose the most interesting type of growth: horizontal or vertical and form a "roadmap" to achieve their career goals. In addition, everyone can take advantage of the professional retraining program and advanced training courses at the Corporate Academy and partner companies, commented Anna Bobrova, HR Director.
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Magnit switches to electronic checks
The retail chain "Magnet" announced on April 20, 2022 that it had launched the process of switching from paper cash checks to electronic ones. Customers will be able to take advantage of this opportunity in more than 26,000 stores of all formats in all 67 regions of the company's presence. This will reduce the use of paper, reduce the environmental impact and reduce operating costs for the purchase of cash tape.
The ability to refuse a paper check appeared in the participants loyalty programs of "Magnet" in. mobile application Users in "Settings" are offered the function "Send a check for." e-mail After it is activated, when paying for purchases using a card, loyaltydocument including the amount, composition of the check, discounts and accrued points, it will be sent to the email user. In this case, if the buyer needs a paper version, he can change the settings in the mobile application or contact the store administrator to receive the document on a traditional medium. Digital checks are more convenient than paper checks: they cannot be lost, they are also stored database FTS in and have the same strength. legal
In addition to the updated option for buyers, the company has reduced the area of all printed checks by 52% since March 2022, optimizing the optional information on them. In one month alone, this saved 93,000 km of cash tape, and the annual decrease in consumption will be about 1,000,000 km.
| Magnit is a large chain in terms of the number of stores in Russia. So that buyers can easily and quickly take advantage of the option to abandon paper checks, we have prepared all the necessary infrastructure in retail outlets and a mobile application. Our visitors can help reduce their environmental impact by simply clicking the digital check button, commented Eduard Iryshkov, Director of the Retail Technologies Department of the Magnit retail chain.
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| We implement a whole range of measures aimed at protecting the environment. Phasing out paper checks is one of the important initiatives that will significantly reduce the volume of cash ribbon consumption over time. In addition, we continue to transfer business processes to electronic document management, thanks to which 9,500 tons of paper were saved in 2019, 2020 and 2021, which is equivalent to almost 230 thousand trees. We also reduce the use of paint on it and have saved more than a million tons of ink in three years, noted Nadezhda Galaktionova, head of the sustainable development department of the Magnit retail chain
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The revenue of the IT-insourcing company retail chain "Magnit" exceeded 4 billion rubles, profit increased more than 3 times
The revenue of ITM, which acts as an IT insourcer of the Magnit group, in 2021 increased by 77.7% compared to the previous year, from 2.3 billion to 4.1 billion rubles. At the same time, the company's profit for the year increased by 230.9%, from 192.7 million to 637.6 million rubles. Such data are published in the service "Kontur. Focus." Read more here
Magnit, despite the increased risks, will not abandon the implementation of SAP
[1]Despite the increased risks, the Magnit retail chain will continue the ERP transformation project based on the product line of the international company SAP. Read more here
2021
Installation of convertible cash registers that can be used both for self-service and by the cashier
In early October 2021, Magnit announced the use of convertible cash registers, which can be used both for self-service and by a store employee in the usual mode.
The new equipment, as noted by the retailer, allows you to choose the best option for conducting transactions depending on the workload of personnel and divide client flows by the volume of the basket. According to the results of testing transformer cash registers, Magnit noted a decrease in queues by 13%, and the conversion rate of consumer traffic reached 40%.
At the first stage, 300 transformers will appear in almost 130 convenience stores and Magnit Cosmetics in different regions of Russia. It is noted that equipping retail outlets with new generation cash registers will be phased. The company will refine the shopping trail in the trading floors in order to organize a convenient area for completing purchases at hybrid self-service checkouts (CSR), work to improve the ergonomics of equipment, as well as create incentive programs for employees so that they popularize modern equipment among buyers.
By the beginning of October 2021, about 1.75 thousand cash desks of the usual self-service cash desks were installed in Magnit stores of various formats. Consumers who prefer self-buying are on average nearly 1.5 times more likely to visit the outlet, according to the retail chain. The main users are women from 20 to 40 years old and men from 25 to 40 years old. In stores where self-service cash desks (CSR) are installed, an increase in staff productivity by 4%, a decrease in queues by 20% are recorded. In addition, the check from buyers who prefer CSR is 10% higher than the average check.
| We are recording an increasing trend towards independent payment: firstly, the behavior of buyers is developing along the minimum cost path, and secondly, in a pandemic, some customers want to distance themselves from routine interactions, so we consider the introduction of hybrid cash desks a good tool for improving the level of service and optimizing everyday processes in stores without increasing staff, - said Eduard Iryshkov, director of the retail technologies department of the Magnit chain. |
Magnit began using a neural network to recognize goods on the shelf
On September 27, 2021, Magnit announced the launch of a neural network for recognizing goods on store shelves. Artificial intelligence controls the compliance of product calculations on racks with the declared plan-scheme (planogram). The accuracy of the check reaches 98%, the retailer claims.
According to him, the system can improve the availability of goods for buyers up to 5%, depending on product categories and increase sales. In case of successful piloting, the technology can be replicated to more than 20 thousand stores of the company.
Point of sale administrators in a mobile application in a smartphone take pictures of the shelves and after a few seconds receive a report on the correctness of the planograms. In the future, such functionality will become available in data collection terminals. The system analyzes the availability of the necessary goods and their balance in the store warehouse, the layout sequence, the location of the items on the first line and other indicators. If all of them correspond to the calculation, then the task is removed, if not, then hints will be given and the task will return to work. In this case, errors are indicated in the form of an understandable graphical diagram.
Previously, employees independently compared the schemes with the calculations made, which took a large amount of time, and the accuracy was not high enough.
A self-learning system allows you to identify the correspondence of calculations even in complex spaces, eliminate the human factor, significantly increase the level of control, reduce the verification time and avoid "virtual" drains.
By the end of September 2021, the neural network for recognizing goods on store shelves operates in 20 Magnit stores in the "at home" format. The company will assess the efficiency of the system and its impact on business indicators, after which a decision will be made to scale the project.
Implement a Queue Video Analytics System that notifies you to open a new cashier
On July 12, 2021, Magnit announced the appearance in dozens of its stores of queue video analytics technology, which automatically determines the number of buyers near the cash desk and notifies staff about the need to open an additional cash desk. The system has been launched in 60 Magnit Family supermarkets and Magnit Extra superstores; by the end of September 2021, it will appear in 21 more stores in the chain.
Magnit installs video analytics in the cash register area, which includes both regular cash registers with cashiers and self-service cash desks. Cameras record a violation if there are invariably five or more buyers in the queue. The system sends an alert online to a chat in a work messenger specially created for employees. Upon receipt of the notification, the operating personnel must respond to the signal - open an additional cash desk, and the system will independently notify buyers about the possibility of going to a free cash desk.
As the retailer notes, the integration of the service is also supported by regional teams responsible for efficiency and client service. The system duplicates alerts to them if the signal is not worked out in the time allotted for redistributing the flow of buyers.
Ruslan Ismailov, Deputy General Director, Director for Management of the Magnit Retail Network, says that the video analytics system can increase customer loyalty by reducing queues and improving the speed and quality of service, as well as increasing the operational efficiency of stores. In addition, thanks to integration with various systems in stores, the retailer will have access to additional analytics, in particular, on incoming traffic, in order to predict queues and adapt store processes in a timely manner for different time intervals, he added.
Plans to introduce new technologies that will bring 1 billion rubles
In July 2021, Magnit spoke about new technologies that are planned to be introduced on the network and which, according to the retailer's forecasts, will provide it with an economic effect of at least 1 billion rubles in two years. We are talking about projects that participated in the second accelerator MGNTech, carried out by Magnit together with the Skolkovo Foundation. In total, eight startups were selected, whose developments will find application in the retail network.
The projects are as follows:
- Ronavi are logistics robots for automating work in distribution centers, industrial and agricultural enterprises. The use of the technology significantly reduces labor costs and increases the speed and efficiency of operations;
- CISLINK is a platform for the sale of non-vegetable fruits and fruits through trading among potential buyers;
- Haut.AI - technology that analyzes the condition of the skin by photo and gives recommendations for care;
- "PTL-trolleys" - technology of intelligent selection of orders for RC, optimizing processes using light prompts;
- Must is an automated system for collecting, analyzing and verifying truck and driver data in real time. The use of Must helps to reduce accidents by 30-50%, as well as reduce losses from downtime, reduce repair costs due to road accidents and improve the driving quality of drivers;
- YouTool is a marketplace for contactless rental of tools and construction equipment. The service connects a person, for example, with a construction store, while taking over the regulation of their interaction;
- GTLogistics - development and implementation of software products for automation of warehouse and transport logistics;
- Smart Tasting is a service for determining reactions to tastings based on neural networks.
A system for tracking customer mood has been launched in Magnit stores
On June 10, 2021, it became known about the launch of a customer mood tracking system in Magnit stores. It is needed to improve the quality of customer service, the company said.
As Forbes writes with reference to the press service of Magnit, the system uses cameras on the buyer's displays in the cash register area - on these screens you can see the contents of the check and find out about current discounts. The technology can recognize a person's gender, age and emotions.
The retailer claims that no personal data is processed. The system is able to determine five types of emotions - neutral, surprise, sadness, happiness and anger. The store can receive statistics for an hour, day, week or month.
By June 10, 2021, the system is being tested in a convenience store for large cities in Moscow, and in the near future two supermarkets will be connected to the project - in Samara and Togliatti.
The project is at the stage of assessing the quality of emotion recognition, collecting statistics and debugging the system. According to the results of pilot testing, Magnit will decide on the scaling and further development of the technology functionality.
| So far, we are only collecting statistics in order to gain critical mass for making a decision. The technology makes it possible to assess the satisfaction of each customer and has great potential to create additional motivation to improve the quality of service, to increase customer satisfaction with the work of our stores and minimize the occurrence of conflict situations. Of the interesting things, we have already noted that in May 2021, buyers in Moscow were almost twice as happy as in April, "said Eduard Iryshkov, director of the retail technology department of the Magnit chain, quoted by the company's press service.[1] |
2020
Magnit stores began to clean robots
On May 14, Magnit announced the start of using the robot cleaner MARK-1. It is designed by Robots to Business for automatic daily wet floor cleaning. Read more here.
Magnit introduced technology that blocks the sale of expired purchases at the checkout
At the end of October 2020, Magnit announced the development and implementation of technology that will help the retailer fight delays and write-offs. The system will increase sales, consumer loyalty and profitability by increasing the availability of goods on the shelf, optimizing labor costs to control shelf life in stores, reducing losses and costs of markdown and blocking sales of expired products at the checkout. Read more here.
"Magnit" opened the first store with "digital filling"
On October 15, 2020, Magnit opened its first convenience store in Moscow, created in a new concept for megacities, which involves the active use of digital technologies.
In a retail outlet with an area of 665 square meters. m, open at ul. Saltykovskaya, 45 in Moscow, for the first time in the Magnit network, transformers are installed, which operate in two modes: as devices for independent payment and as usual cash registers with an employee. This will avoid queues and use the desired mode depending on the intensity of traffic, the retailer explained.
LED screens on the sales floor broadcast useful content, and media boxes have also been added to make contact with customers more interactive. The store is fully equipped with two-color electronic price tags, which faster update product data and save staff time. Buyers can use price checkers, displays at the checkout, test payment technology based on face recognition, and use MobiScan's solution to scan items and quickly pay for them at self-service checkouts.
The new format involves its bakery and a small coffee area with free Wi-Fi. Fandomats are installed - special devices for collecting plastic packaging - and separate stations for receiving plastic caps and batteries. The range in the "middle" and "middle +" price segments has been increased in all categories.
Ruslan Ismailov, director of retail chain management at Magnit, told RBC that the store has become "as digital as possible." The company does not disclose the costs of the new format of stores with "digital filling." Each such point can cost the retailer 15 million rubles, says Mikhail Burmistrov, a representative of the InfoLine-Analytics agency.[2][3]
Opening an office in Skolkovo
On September 11, 2020, Magnit announced the opening of an office at Skolkovo. Its employees will be engaged in the creation of new technologies for retail.
Skolkovo will employ about 100 Magnit employees from Moscow and the regions of Russia. These are IT specialists in the areas of ERP, Big Data, finding innovations and launching new technologies. At the first stage, the key tasks of the office are the implementation of SAP solutions to accelerate digital transformation and optimize the company's business processes. It is expected that the effect of the implementation of SAP will be in the billions of rubles, according to a press release.
Magnit expects that the opening of a digital office will allow the company to significantly increase its IT expertise, gain access to new technologies and become one of the industry leaders in launching and effectively using advanced solutions in traditional retail and e-commerce.
In addition, the office will work with startups, pilot new technologies, evaluate test results and implementation prospects.
| Opening an office is an opportunity to attract high-class personnel to transform and adapt the company's digital environment to current tasks, use the infrastructure and services of the technology park. This will allow us to effectively support the development of our network in different directions, to respond more flexibly to the needs of business and customers, "said Florian Jansen, Deputy General Director, Executive Director of Magnit retail chain. |
According to him, Magnit works in one of the fastest growing industries and wants to be the best for its customers, but it is impossible to offer them new services and options to create a strong digital foundation.
Kirill Kayem, Senior Vice President for Innovation at Skolkovo, says the fund intends to focus on supporting projects that Magnit is interested in.
Magnit introduces video analytics throughout Russia for the rating of cashiers
On June 2, 2020, Magnit announced the beginning of a large-scale introduction of video analytics tools to minimize the occurrence of queues, improve the quality of service for buyers and increase trade. Read more here.
Temperature control of fresh produce online
On May 19, 2020, Magnit announced the equipment of all its distribution centers (RC) with a remote temperature control system, and also began to use similar product monitoring sensors on the way to stores.
The innovation will allow the retailer to control the freshness of goods via the Internet, increase their "life expectancy," as well as reduce losses by 10%, subject to the remaining necessary indicators.
Russian-designed sensors are installed in storage chambers and in the area where goods are loaded into delivery vehicles in the RC, which scan the storage temperature and, in case of deviations online, transmit data to the e-mail and mobile phone responsible for fixing problems. Refrigerated trucks of the company's own cars are also equipped with new equipment.
After loading the goods into the trucks, additional sensors are installed in the container with the products. Thus, not only the total temperature in the truck is monitored, but also the temperature of a separate box on the way to the buyer, noted in Magnit. This is necessary to analyze whether a certain thermotar is suitable for maintaining quality or whether it needs to be replaced with another. After the goods are delivered to the stores, the sensors are returned to the RC, the indicators are examined and an appropriate decision is made.
It is reported that the remote temperature monitoring system will operate in the RC on an ongoing basis, and not only in the summer season.
Marya Dey, board member, supply chain director of Magnit retail chain, emphasizes that the solution for remote temperature control will be synchronized with other systems that are being implemented in the company by mid-May 2020. Among them are warehouse and transport management systems.[4]
Opening of the ERP Digital Office at the Skolkovo Innovation Center
The Magnit retail chain has become a key partner of the Skolkovo Foundation and will open a Digital Office in the Innovation Center for ERP - commodity movement, finance, HR. The strategic cooperation agreement also provides for the search and piloting of innovative solutions for buyers and businesses. The Skolkovo Foundation announced this on February 13, 2020.
It is assumed that the Digital Office of Magnit will open in April 2020, it will employ about 170 specialists. The office will focus on R&D (Research & Development), including the creation and development of retail network information systems.
The additional involvement of highly qualified specialists and the active participation of the Magnit Digital Office in the life of the IT community of the Skolkovo Innovation Center will help expand the technological competencies of the retail network.
Magnit, together with other major participants in the Skolkovo ecosystem, will contribute to the formation of legislative initiatives for retail, the introduction of modern technologies for buyers and suppliers.
The cooperation agreement also provides for work with innovative technologies and solutions for business digitalization presented at Skolkovo and in world markets. The focus will be on financial technology, cooperation with key startups, industrial and technological partners.
| "Magnit" becomes the first representative of retail in the list of key partners of the Fund. Trade is one of the fastest growing industries in terms of digitalization. Together with Magnit, we plan to accelerate the development of technologies in this area: increase the competence of Russian startup teams, participate in the state initiative for regulatory regulation of the digital economy, create technological solutions for the industry, said Arkady Dvorkovich, Chairman of the Skolkovo Foundation
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| Cooperation with the Skolkovo Innovation Center is an important step for Magnit in the development of technological competencies. The retail industry is undergoing a digital transformation to meet modern challenges, we need to look for modern solutions. The digital office will allow the company to attract high-quality personnel, gain access to the technology, infrastructure and ecosystem of Skolkovo, noted Jan Dunning, President, General Director of PJSC Magnit
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2019
Magnit Main IT Projects of the Year
In the annual report for 2019, the Magnit network summed up its IT activities. The document states that 2019 was fundamental for Magnit to identify a key vector for business continuity, organic growth of the company, implementation of strategic initiatives and the formation of a change and transformation plan aimed at improving all key performance indicators.
In 2019, the company approved an IT strategy that takes into account the key goals and objectives of the business strategy. In the reporting year, the company's IT projects were aimed at better understanding the needs and priorities of buyers, according to Magnit. The network has launched a loyalty program and plans to continue to develop it with various innovative solutions, such as a payment application using face recognition technology. And Magnit also opened the first "superstore" in Krasnodar, equipped with video monitoring of queues and the availability of products on the shelves.
In addition, Magnit has launched a new information system working with the National Catalog of Goods. The company expects that this will allow it to reduce the time required to bring new products to the market.
| Important IT projects have become the technology of voice management of pick-by-voice warehouse operations and the technology of sorting goods at the time of arrival pick-by-line, which have increased the efficiency of warehouse management and reduced the time required to perform routine operations when handling goods, - note the compilers of Magnit's annual report. |
For warehouses, Magnit is running a new control system (WMS), launched in pilot mode in one of its distribution centers. The retail chain expects that it will allow it to manage all operations in distribution centers: from processing applications to delivery to stores. This project is designed to increase the capacity of distribution centers.
In 2019, Magnit also launched electronic document management in the logistics division. In the pilot project, the use of electronic invoices made it possible to significantly reduce the processing time of documents: from three days to three hours. The company says that they became the first retailer in Russia to implement such a solution.
Other important projects include, for example, deploying a secure cloud infrastructure in Microsoft Azure. Magnit claims that this has reduced the time and cost of projects of common service centers (SSCs), EDMS, Service Desk and others.
The annual report also provides for the introduction of its own mobile device management platform at TanderStore retail facilities, which, the company expects, will reduce the cost of maintaining devices.
The company notes that now to manage everyday operations in Magnit, an ERP system based on 1C: Enterprise is used. Data on all operations from all stores is sent to the main control center, where, after processing, analytical reports are prepared. In 2019, the company optimized this system in accordance with its new organizational structure: it reduced the number of databases, which reduced the cost of maintaining the system.
In 2020, Magnit reported that the digital core that unites all the company's business processes will be the SAP S/4HANA Retail system, which will allow end-to-end commodity and financial accounting. During the program, more than 40 SAP S/4HANA modules are planned to be implemented: at the first stage, the system will cover the automation of finance, commodity movement, personnel and reporting. The digital transformation based on the solutions of the German vendor Magnit was announced after 25 years of cooperation with 1C. Learn more about upgrading to SAP here.
Transition to electronic contracts with suppliers - for the first time in Russian retail (in operation)
On January 13, 2020, Magnit announced that it was the first among Russian retail chains to switch to electronic contracts with suppliers. Thanks to this project, the retailer has reduced the reconciliation of documents with 40 to 2 minutes. Registration of conditions now takes place automatically, and the exchange of documents is online.
In four months, "Magnit has digitally transferred about 700 suppliers to the contract, and the full transition is planned to be made by the end of 2020.
On the provider's platform, the network partner fills out a form with details and conditions. The Supplier shall examine the text of the contract and its appendices and, if there are comments, shall form a protocol of disagreements, which shall be uploaded to the system together with the statutory documents.
The entire archive of documents (contract, appendices, protocol of disagreements) is signed and transmitted to the network. Magnit on its side checks the conditions that the network partner introduced and the protocol of disagreements. If agreements are reached, then the agreement is signed by the retailer, if not, it is rejected. As a result, in addition to reducing labor and time costs, there is no need to keep a paper archive. According to the retailer's forecasts, more than 1 million paper sheets will be saved in 10 years.
According to Evgeny Melnikov, director of information technology and information protection of the Magnit network, the paper scheme of interaction with suppliers, in addition to labor costs, carried serious risks: the text of the document could be changed before loading into the system and signing, so it was necessary to double-check each side every time for the absence of distortion.
| Our development is a document in an unchanged format, only its part of the contract is available for each party to fill out. Once signed, it is protected from changes. The exchange goes through electronic document management channels through specialized providers, which ensures the protection of information privacy, he said.[5] |
In "Magnet" revealed the cases and effects of the use of fashionable technologies - analytics, VR, biometrics
Speaking at the TAdviser SummIT conference on November 27, 2019, Victoria Kozlova, head of the research department for promising technologies at Magnit, told what technologies can be effective based on the experience of her company.
New technologies in Magnit are divided into two main areas. The first is new types of data collection devices, for example, biometric terminals, sensors, sensors, etc. The second area is products and solutions that process all collected data. This will always be in trend, as an integral part of reality, Victoria emphasized.
At the same time, Kozlova noted that no matter what technologies the company is engaged in, they cannot be successfully tested or implemented without having at least three basic things. These include partnerships between team members as well as properly structured processes involving an understanding of roles, responsibilities and sequence of actions. The third necessary element is motivation, and not only material.
In 2019, Magnit created a test environment with 40 stores, 3 of which are laboratories located in Krasnodar, Moscow and Kazan. Due to this, Magnit reduced the time to deploy and study complex hardware and software systems from an average of 290 days to 90 days.
In the most detail, Victoria Kozlova dwelled on several technologies that are now in active development. For example, video analytics. It is used, for example, to manage queues. Already installed in a number of stores, the technology helps reduce queues by 70%.
Another case here is the control of the filling of shelves and planograms. The representative of Magnit noted that retailers in Russia are only testing this technology so far, but it has not yet come to widespread implementation. The minimum expected value of efficiency is estimated as 1% of sales growth. In Magnet, the same cameras evaluate the correctness of the shelf price tags, working on general indicators of improving the level of service and availability of goods for the buyer.
Video analytics can also be used for FaceID mechanics (person as identifier). Magnit operates in 4 promising areas. The first is the loyalty ID. The company recently finished rolling out a loyalty program to all of its stores and sees great potential in the transition from plastic cards to face identification. It is expected that in certain locations, up to 50% of loyalty program users will want to use this.
FaceID can also be used for payment. In a number of its stores, Magnit is testing this technology, which, as expected in the company, in the future will not only give customers a new digital experience, but also save time at the checkout during the calculation.
Finally, FaceID can be used to record working hours. In Magnet, this project is in the active phase. Its purpose is to automate the accounting and payroll process.
They are engaged in Magnit and audio analytics to control the quality of customer service. In addition to grocery stores, Magnit also has a network of pharmacies, cosmetics stores, where sales are very dependent on the quality of service. The company is testing technology to control the correct pronunciation of standard phrases, and as a result, they understand which of the employees needs to undergo additional training, for example. The perspective of the case is estimated at 7% of sales growth.
Also, the company's distribution centers tested the pick by voice technology, which, through voice commands, helps a warehouse employee complete standard selection and picking tasks, thereby increasing performance.
Separately, Kozlova dwelled on the development of analytical tools. Magnit seeks to ensure that systems can deliver ready-made business solutions based on the company's big data, for example, in the administration of retail outlets.
Magnit was not spared by virtual and augmented reality technologies. The company starts testing to train personnel in VR glasses. The technology allows you to learn at any time, anywhere, while glasses allow the employee not to be distracted by extraneous factors during training.
О TAdviser SummIT
TAdviser SummIT was held in Moscow on November 27, 2019 and attracted more than 700 participants - heads and experts of IT divisions of the largest companies and government departments of Russia, representatives of IT developers and contractors. During the event, the prospects for digital transformation of business and government agencies, the development of technologies, products and services were discussed. The conference was supported by the Ministry of Digital Development. It was attended by the head of the department Konstantin Noskov, who, during an open discussion, summed up the first results of the Digital Economy national program. In total, about 60 reports were made in the plenary part and five thematic sections. The event was held in 5 halls of Radisson Blu Olympiyskiy.
Launch of stores with self-service checkouts and sommelier robots
At the end of October 2019, it became known about Magnit's plans to launch stores with self-service checkouts and sommelier robots. The retailer will call the new supermarkets superstores.
The general director of Magnit told analysts and investors about the transformation at a teleconference, Ian Dunning they write. Vedomosti
According to him, the superstore will be a "digital, interactive and atmospheric store." He cited as an example independent scanning and payment, as well as an electronic sommelier of Kuban wines - the display will read the barcode from a bottle of wine and give information on the manufacturer, taste, etc. Similar devices called "Electronic Cavist" have been operating in the Carousel hypermarkets of X5 (formerly X5 Group) since 2018.
These stores will be located within the city, navigation and zoning will be updated in them. Customers will be offered a wider range of perishable goods, products under their own brands. In addition, superstores will not have some categories of non-food products, such as clothing.
Magnit decided to change, because it noticed the outflow of buyers from classic hypermarkets. The largest stores - with an area of more than 2100 square meters. m - the company will turn into "superstors."
| They [customers] do not want to spend time traveling to a large format, and purchases of non-food products quickly flow to the Internet, a company representative told Vedomosti. |
He added that hypermarkets have a weak assortment and promotions that practically do not differ from convenience stores, so customers have no reason to go to a large format store.
The first Magnit superstore will be opened in Krasnodar. By the end of October 2019, seven classic hypermarkets with an area of more than 5 thousand square meters remained under the management of the company[6]
Magnit began a large-scale business transformation with the help of 1C
On June 6, 2019, the Magnit retail chain entered into a strategic cooperation agreement with 1C. The companies plan to jointly optimize the capabilities of the 1C platform to better meet the requirements of Magnit's growing and diversified business and meet the tasks that the network has set itself as part of a major transformation. Read more here.
2018
Magnit and SAP will create a platform for marketing and sales
In June 2018, Magnit and SAP CIS signed a strategic partnership agreement. Companies plan to create an information platform to optimize sales and marketing processes. The agreement also provides for the development and use of tools for the development of forward-looking analytics.
On the basis of a single system, it is planned to collect and analyze data on purchasing behavior, sales efficiency and marketing actions. In addition, the platform will create IT tools using Big Data technologies, machine learning and predictive analytics. The solutions are designed to enable the retailer to optimize costs, improve the quality of customer service, and create the basis for implementing its own loyalty program.
Magnit will predict customer demand using Microsoft technologies
In June 2018, Magnit and Microsoft signed an agreement on comprehensive digitalization of the network. Together they will develop technologies that will analyze consumer demand and, based on this data, compile personalized offers. The customer will be able to see them in the store's mobile app.
Magnit and Microsoft plan to create a machine learning model to predict demand in stores. The retailer expects that this will allow analyzing the volume of product consumption, ensuring the constant availability of fresh goods, including unique ones for specific regions, as well as predicting demand using AI.
For Microsoft, this was the first large-scale partnership with Microsoft retail. Microsoft had a similar project at the global level with the American retail giant Walmart.
2016: Magnit has installed a thousandth self-service cashier
In October 2016, the Magnit network announced that it had installed a thousandth cash register. It was installed in the Ulyanovsk hypermarket. In total, 10 units of modern equipment are installed in the store.
Self-service checkouts allow customers to self-punch goods through the scanner and make payments. The equipment is located in specially designated areas where cashier consultants are present to help make purchases. The devices accept bank cards and cash. Navigation is provided on the trading floor: arrows and posters with the slogan "Save time."
Magnit began installing self-service cash desks in November 2014 during a trial launch of the project. The first devices appeared in Krasnodar and Tuapse. Since 2015, the retail chain has begun introducing self-service checkouts in the rest of its stores. NCR Corporation became a partner of the company for the supply and equipment of cash registers.
As of October 2016, the equipment is installed in more than 150 retail outlets of the network. The technology helps increase store capacity, complements traditional cash lines and significantly speeds up the service process.
IT passport of Magnit projects
{{# ITProj: Thunder Chain Magnit}}
Notes
- ↑ "Magnet" began to test the system of recognizing the emotions of buyers
- ↑ "Magnit" opened a store "at home" for large cities
- ↑ "Magnit" will launch a new format of stores with "digital filling"
- ↑ Magnit will control the delivery of fresh food online
- ↑ Magnit was the first among retailers to introduce a digital form of contract with suppliers
- ↑ Magnit decided to convert hypermarkets into "superstores"





