Lenta Ltd Lenta opens 11 stores acquired from Kesko

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RNS Number : 2011R

Lenta Ltd

07 December 2016

Lenta opens 11 stores acquired from Kesko

St. Petersburg, Russia; 7 December, 2016 - Lenta, (LSE, MOEX: LNTA) one of the largest retail chains in Russia, is pleased to announce the opening of 11 new stores acquired during the purchase of the Kesko food retail business in Russia ("KFR"), previously operating under the K-Ruoka brand.

10 hypermarkets and one supermarket are opening today in Saint-Petersburg and the Leningrad region, now operating under the Lenta brand.

The total selling space of new Lenta stores is 40,023 sq.m(1) , of which 39,657 sq.m is owned and 2,366 sq.m is rented. In terms of size and layout, the stores are compatible with existing Lenta compact and supercompact hypermarket formats, and all of the store locations are strategically complementary to Lenta's existing stores in Saint-Petersburg and the Leningrad region. All stores are opened 24 hours, 7 days a week.

The specific store characteristics are listed in the table below:

Address          Total    Trading      Store       Ownership     Number      Number      Number 
                       Space     Space       Format                    of cash     of SKUs    of parking 
                       (sq.m)    (sq.m)                               registers                  lots 
-------------------  --------  --------  -------------  ----------  -----------  ---------  ------------ 
 Hypermarkets 
-------------------------------------------------------------------------------------------------------- 
 Leningradskiy 
  region, 
  Kingisepp, 
  69 Krikkovskoe 
  av.                 7,300     3,660     Supercompact   owned       18           14,000     410 
-------------------  --------  --------  -------------  ----------  -----------  ---------  ------------ 
 St.Petersburg, 
  Peterhof, 
  58A Gostilitskoe 
  av.                 7,300     3,677     Supercompact   owned       18           14,000     400 
-------------------  --------  --------  -------------  ----------  -----------  ---------  ------------ 
 St.Petersburg, 
  60A Parashutnaya 
  str.                11,200    5,150     Compact        owned       28           19,000     400 
-------------------  --------  --------  -------------  ----------  -----------  ---------  ------------ 
 St.Petersburg, 
  45A Shuvalovskiy 
  av.                 7,200     4,485     Compact        owned       18           19,000     180 
-------------------  --------  --------  -------------  ----------  -----------  ---------  ------------ 
 St.Petersburg, 
  59A Piskarevskiy 
  av.                 10,900    5,150     Compact        owned       28           19,000     240 
-------------------  --------  --------  -------------  ----------  -----------  ---------  ------------ 
 St.Petersburg, 
  17A Planernaya 
  str.                10,900    5,150     Compact        owned       26           19,000     450 
-------------------  --------  --------  -------------  ----------  -----------  ---------  ------------ 
 Leningradskiy 
  region, 
  Vsevolozhsk, 
  12 Doroga 
  Zhizni 
  av.                 7,500     3,670     Supercompact   owned       15           17,000     860 
-------------------  --------  --------  -------------  ----------  -----------  ---------  ------------ 
 Leningradskiy 
  region, 
  Sosnoviy 
  Bor, 2 
  Akademika 
  Aleksandrova 
  str.                7,500     3,655     Supercompact   owned       18           14,000     650 
-------------------  --------  --------  -------------  ----------  -----------  ---------  ------------ 
 St.Petersburg, 
  13A, bld.2, 
  Simonova 
  str.                6,700     3,540     Supercompact   owned       16           14,000     250 
-------------------  --------  --------  -------------  ----------  -----------  ---------  ------------ 
 
 St.Petersburg, 
  34 bld.2 
  Uriy Gagarina 
  av.                 3,552     2,366     Supercompact   leased      15           10,000     100 
-------------------  --------  --------  -------------  ----------  -----------  ---------  ------------ 
 Supermarkets 
-------------------------------------------------------------------------------------------------------- 
 St.Petersburg, 
  7A Urkhov 
  alley               2,900     1,520     Supermarket    owned       11           10,000     100 
-------------------  --------  --------  -------------  ----------  -----------  ---------  ------------

These new openings bring the total number of Lenta stores to 180 hypermarkets in 77 cities across Russia and 44 supermarkets in Moscow and St. Petersburg.

About Lenta

Lenta is the largest hypermarket chain in Russia (in terms of selling space) and the country's fifth largest retail chain (in terms of 2015 sales). The Company was founded in 1993 in St. Petersburg. Lenta operates 180 hypermarkets in 77 cities across Russia and 44 supermarkets in Moscow and St. Petersburg, with a total of approximately 1,089,165 sq.m of selling space. The average Lenta hypermarket store has selling space of approximately 5,800 sq.m. The average Lenta supermarket store has selling space of approximately 1,000 sq.m. The Company operates seven owned distribution centres.

The Company's price-led hypermarket formats are differentiated in terms of their promotion and pricing strategies as well as their local product assortment. The Company employed approximately 34,134 people as of 30 June 2016(2) .

The Company's management team combines a mix of local knowledge and international expertise coupled with extensive operational experience in Russia. Lenta's largest shareholders include TPG Capital and the European Bank for Reconstruction and Development, both of which are committed to maintaining high standards of corporate governance. Lenta is listed on the London Stock Exchange and on the Moscow Exchange and trades under the ticker: 'LNTA'.

A brief video summary on Lenta's business and its Big Data initiative can be seen here.

For further information please visit www.lentainvestor.com, or contact:

Lenta                               Citigate 
  Anna Meleshina,                     International Media: 
  Public Relations &                  David Westover 
  Government Affairs                  el: +44 207 282 2886 
  Director                            E-mail: lentateam@citigatedr.co.uk 
  Tel: +7 812 363 28 
  53                                  FTI Consulting 
  E-mail: anna.meleshina@lenta.com    Russian Media: 
                                      Anton Karpov & Victoria 
  Anastasia Kuznetsova,               Afonina 
  Corporate Communications            el:+7 495 795 06 23 
  Manager                             E-mail: lenta@FTIconsulting.com 
  el:+7 (812) 336 39 
  97 
  E-mail: a.kuznetsova@lenta.com

(1) The total selling space of the stores acquired from Kesko is presented after adjustments made by Lenta during integration process.

(2)   FTE (full-time equivalent). Average FTE for 1H 2016 was 33,758 employees

This information is provided by RNS

The company news service from the London Stock Exchange

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December 07, 2016 06:03 ET (11:03 GMT)