Information technologies in Magnit retail chain

Main article: Thunder Chain Magnit stores

History

2024

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.

Magnit began to control the working hours of employees using QR codes and smartphones

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.^[1]

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.

Шаблон:Quote 'author = said Eduard Iryshkov, director of the retail technology department of the Magnit chain.

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.

Шаблон:Quote 'author = said Eduard Iryshkov, director of the retail technology department of the Magnit chain.

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.

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.

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.

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

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

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

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 the 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 projects at Magnit

{{# ITProj: Thunder Chain Magnit}}

Notes