12 November 2018
Statement on the fire in Lenta hypermarket in St. Petersburg
Saint Petersburg, Russia; November 12, 2018 – Lenta (LSE, MOEX: LNTA), one of the largest retail chains in Russia, reports details of a fire in one of its hypermarkets in St. Petersburg.
At about 8:30 a.m. on November 10, 2018, a fire occurred at the Lenta hypermarket located at 118 Obvodniy channel embankment. The fire started in the shopping area. Fire alarm and fire extinguishing systems triggered automatically. The fire brigade arrived at the site within 10 minutes, by which time all customers and employees (about 100 people in total) had already been evacuated from the store. One Lenta employee suffered minor abrasions from a fall and was sent home after a medical examination at a local hospital. As a result of the fire, the shopping area and some parts of the roof sustained considerable damage. The administrative and unloading areas were largely undamaged.
The store was in compliance with all regulatory requirements. The most recent fire safety inspection of this hypermarket was carried out in December 2017, and the Ministry of Emergency Situations (EMERCOM) had issued all relevant permits. The Company is actively working with law enforcement agencies and the EMERCOM to identify the causes of the incident as quickly and precisely as possible.
The hypermarket was insured in accordance with Lenta’s standard practices. The insurance covers the store building, equipment, inventory and interruption of business operations. The amount of damage is yet to be estimated. It is expected that the hypermarket will be repaired and returned to operation during 2019. Customers of the store have been contacted offering alternative Lenta stores in the vicinity until the store is operational again.
Lenta is the largest hypermarket chain in Russia (in terms of selling space) and the country’s third largest retail chain (in terms of 2017 sales). The Company was founded in 1993 in St. Petersburg. Lenta operates 233 hypermarkets in 85 cities across Russia and 127 supermarkets in Moscow, St. Petersburg, Siberia, Urals and the Central region with a total of approximately 1,408,830 sq.m of selling space. The average Lenta hypermarket store has selling space of approximately 5,600 sq.m. The average Lenta supermarket store has selling space of approximately 800 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 50,600 people as of 30 June 2018 1.
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:
Public Relations and Government Affairs Manager
Tel.: +7 812 380-61-31 ext.: 1892
Anton Karpov & Victoria Afonina
Тel:+7 495 795 06 23
1 FTE (full-time equivalent). Average FTE for 1H2018 was 49,643 employees.