Case studies
Completion of DIXY’s integration into the Company’s structure
Following the 2021 acquisition of DIXY, the fifth largest grocery retailer in Russia, Magnit considerably strengthened its positions in the Russian food retail sector.
With DIXY’s strong presence in Moscow, St Petersburg and the Moscow and Leningrad regions, which altogether in 2022 accounted for 28% of the Russian food retail market, Magnit was able to ramp up its share and solidify its standing in these regions.
As early as 2021, the integration of DIXY provided Magnit with synergies in procurement, category management and technology along with cost savings achieved through optimisation of business processes. The integration process was successfully completed in 2022.
Key integration initiatives
- Unified commercial terms for both retailers as a result of negotiations with suppliers
- Improved merchant acquiring conditions for DIXY
- Optimised personnel costs at Magnit
- Ad savings as a result of reliance on the same service providers for both retailers
- Optimised sales of recyclable waste materials
- Optimised rent rates for Magnit and DIXY
- Harmonisation of IT systems of both retailers
Key results
- Smooth integration while maintaining growth and meeting DIXY’s original key financial targets (revenue, sales density and EBITDA)
- Business synergies as a result of joint efforts of the commercial teams of Magnit and DIXY
- Introduction of best practices in HR management and operations
- DIXY EBITDA catching up with that of Magnit
-39 %
in staff turnover +70 %
DIXY EBITDA growth following integration 