X5 Retail Group NV has increased its stake in Pyaterochka and signed a new agreement to develop a new chain of Pyaterochka stores through franchising. The Russian food retailer has bought a further 24 percent of Pyaterochka for $11 million, increasing its holding in the company to 75 percent. The company also has an option to buy the remaining 25 percent next year.
X5 has agreed for Prodmag to develop at least 30 Pyaterochka franchises in the Ivanovo and Kostroma regions within two years, with the option to buy the stores in 2011.
The company was created from the merger of soft discounter Pyaterochka and supermarket chain Perekrestok in May 2006.
