PJSC Sberbank : SberMarket topped eGrocery market in Russia for first time in 2021, delivered 24 million client orders

• Turnover tripled to RUB 58.6 bn in 2021, including VAT and excluding promotions
• The number of orders delivered by the service quadrupled to 24 million in 2021
• SberMarket is a nationwide delivery service for groceries and basic commodities. The company is present in 154 cities in Russia. The service was launched in 71 new cities in the span of a year
• In December 2021, SberMarket delivered 4.2 million orders, an increase by a factor of 3.5 y-o-y. At its peak, the service broke a new record, making over 216,000 deliveries per day (a threefold increase y-o-y)
• The number of partner retailers doubled over the year to 120 national and regional retail chains.

National food and goods delivery service SberMarket (part of the Sber ecosystem) has presented its results for 2021. The service's turnover amounted to RUB 58.6 bn, including VAT and excluding promotions¹. SberMarket topped the Russian eGrocery market in 2021 and intends to increase its lead over its competitors.

Strategic development

In 2021, SberMarket entered into a series of strategic partnerships. At the root of its cooperation with METRO is a common goal to make METRO's high quality products accessible to more people and create jobs in a new hybrid economy. The main objective of the agreement with Auchan is to accelerate the development of Auchan's phygital commerce and strengthen the positions of both companies in the product retail market. The companies will create a joint e-com service for selling food and non-food products.

SberMarket's current strategic partnerships with METRO and Auchan include the development of joint dark stores and will be in place until 2028. Among the company's major achievements is the active development of rapid delivery from Magnit to all corners of Russia.

SberMarket also began scaling its pickup service in over 99 Russian cities to 40 retailers, including METRO, Auchan, Lenta, O'Key, SELGROS Cash&Carry, Globus, Magnit, Viktoria, PRISMA, and SPAR.

Lev Khasis, first deputy chairman of the executive board, Sberbank:

"SberMarket's results are a great example of how business is evolving in the Sber ecosystem. The company has gone from a small startup to a national champion in its industry in a matter of years."

Expansion of the service's geographical coverage and retail partner pool

SberMarket demonstrated record growth in orders delivered, service quality, and geographical coverage in 2021. The number of orders in 2021 quadrupled to 24 million. Every day, SberMarket delivers over 150,000 orders to customers. The service started operating in new cities and had spread to cover 154 cities by the end of the year.

Over the span of last year, SberMarket actively expanded its retail partner pool among national and regional networks, going from 66 in early 2021 to 120 in late December. The service cooperates with both major federal chains such as METRO, Lenta, Auchan, and Magnit and leading regional players such as Samberi, Komandor, Megamart, and more. SberMarket carries out deliveries from VkusVill dark stores. FIX Price, Verny, and Dixy began working with the service in 2021.

This facilitates the implementation of one of the company's strategic goals - delivering products from clients' favorite stores nationwide. Delivery is carried out from 7,285 outlets (compared to 967 a year earlier).

Dmitry Zhulin, co-founder, SberMarket:

"SberMarket's leadership is a reflection of our clients' trust. A wide range of products, affordable prices, and fast service are what keeps customers coming back to SberMarket and placing more and more orders. This would not be possible without our partner retailers, who make it possible for us to offer the maximum choice of goods, including groceries, pet products, cosmetics, and much more. Cooperation with leading retail chains in Russia and our strategic partnerships with METRO and Auchan are the best proof of our reliability. We are also actively developing our own advertising platform for manufacturers, bringing us as close as possible to the consumer, even when they are shopping online."

New business areas

In 3Q, SberMarket began actively developing rapid delivery starting at 20 minutes. By the end of the year, swift delivery made up over 30% of orders. Express delivery is available from 88 national and regional chains.

The company also began expanding the categories available to consumers. SberMarket launched express delivery of over-the-counter medication from Erkapharm Group pharmacies: Samson Pharma, Doctor Stoletov, Ozerki, SuperApteka, and more. The service was the first in the market to start delivering frozen products from IKEA. In 2021, SberMarket started cooperation with pet shops, perfumery and cosmetics shops, and launched healthy eating and floristry categories.

B2B development: corporate client sales

SberMarket's B2B turnover in 2021 showed growth by a factor of 2.6. The client base approached 100,000 registered legal entities.

Featuring online filing and VAT refunds, a separate showcase for companies was launched in June. This helped the service create the most relevant products and customer journey for corporate clients. As of the end of December 2021, around 70% of corporate client orders use the new storefront.

The range for corporate clients was also expanded by introducing non-food retailers. SberMarket's B2B clients can now order stationery and furniture for offices from inFORMAT and Officemag.

Interaction with Sber ecosystem companies

SberMarket is actively developing projects with other companies in the Sber ecosystem. It launched an integration with SberSpasibo: customers earn bonus points when making orders and can redeem them for discounts of up to 99%. SberSpasibo customers have already saved RUB 1.4 bn using SberMarket bonus points. SberSpasibo reward points are already used in 14% of orders.

In 2021, 476,000 new clients with a SberPrime subscription began using SberMarket. Every third order at SberMarket involves a subscription.

Users of the SberBank Online and Sber Salute apps can now order goods from the SberMarket catalog through the virtual assistants. It is also possible to order goods through SberMarket on the SberMegaMarket platform.

Developing the operations unit (assembly and delivery of orders)

In 2021, SberMarket improved its availability: during peak season in November-December, clients could place and receive an order from a hypermarket in a one-hour time slot or with quick delivery starting at 20 minutes. As a result, even during the pre-New Year rush, SberMarket delivered over 216,000 orders per day with high quality service: the average score per order at the end of the year was 4.89 out of 5. The number of assembly and delivery partners exceeded 39,000 persons across Russia at the end of the year (more than doubling y-o-y).

According to INFOLine data, SberMarket topped the grocery delivery market in 3Q. The company was able to maintain its leadership in 4Q and the whole year.

Asan Kurmanguzhin, CEO and co-founder, SberMarket:

"2021 was a breakthrough year for us. It proved that caring about and anticipating client needs are the key to success. SberMarket's turnover tripled compared to 2020. It should be noted that one of the main drivers behind this growth was the synergy with the Sber ecosystem. Integration with the SberPrime and SberSpasibo loyalty programs had a major positive effect on our GMV. Today we can confidently say that we are the leader of the eGrocery market, and we are not stopping here. SberMarket must become the place Russians go to order goods meeting as many of their needs as possible and receive those goods quicker than a trip to the store would take. That is why we will continue to concentrate on expanding our product range and ensuring favorable prices and rapid delivery in 2022. Naturally, a high level of service is only possible with assistance from professional couriers and procurement experts, and creating the best conditions for them in the market is one of our focal points."

SberMarket delivers groceries and essential goods from your favorite stores. The service delivers from 150 retail chains, including the national retail networks METRO, Lenta, Auchan, Magnit, and O'Key. Express delivery and new categories - delivery of OTC medication from pharmacies, cosmetics, children's goods, and pet products - are key priorities for the company.

Every day, SberMarket delivers over 150,000 orders to clients in over 150 cities across Russia, from Kaliningrad to Vladivostok.

SberMarket is actively developing one-hour express delivery. These orders currently make up 30% of all orders.

1 Orders delivered and paid for, after deducting discounts.