RPT X5 Retail Ups Pyaterochka Stake, Signs Franchise For 30 New Stores

FreshPlaza:

X5 Retail Group NV. said it has increased its stake in Pyaterochka and signed a new franchising agreement to develop a new chain of Pyaterochka stores.

The Russian food retailer said it has bought a further 24% of Pyaterochka for $11 million, taking its holding in the company to 75%, and that it has an option to buy the remaining 25% in 2009.

X5 said it has agreed for Prodmag to develop at least 30 Pyaterochka franchises in the Ivanovo and Kostroma regions within 2 years, adding it has 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.