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Sergey Galitsky born 14 August, 1967 is a Russian billionaire businessman, the founder and co-owner of Magnit, Russia’s largest retailer, and president of FC Krasnodar. His net worth was estimated at $3.4 billion as of June 2019 making him the 617 richest person in the world.
Sergey Galistky was born on 14 August 1967, in Lazarevskoye, a suburb of Sochi, southern Russia, his mother is Russian and his father is Armenian. He later adopted his wife’s surname.Before college, Galistky was in the army for two years from 1985 – 1987. After leaving the army, he studied Economics in Kuban University. Service in the army gave him certain benefits, and Sergei easily entered a prestigious university. He studied well and even wrote in the second year an article on financial liquidity in the famous professional journal “Finance and Credit.” The editors recognized Galistky’s article as serious and published it. In the financial world of Krasnodar this publication made a real sensation, and Galitsky was invited to an interview with one of the banks of the city. He was offered to work as deputy bank manager. He successfully combined work with studies and successfully received a diploma of higher education, which gave him opportunities for professional growth.
One year after graduation from college and working at the bank, Galistky resigned from his job to pursue other dreams.
After leaving the bank, he together with several classmates, creates the firm “Transazia”, the initial capital was 30 thousand dollars, which Galistky took on credit due to his bank acquaintances. The company engaged in wholesale supplies of cosmetics and household chemicals. The first time, according to Galitsky, the firm was balancing between the financial abyss and a small profit. But soon the guys managed to become the only distributor in Krasnodar region of the world’s largest company Procter & Gambl. The firm began to bring a stable income and prospects. But soon Procter & Gambl demanded that a separate company work with it. Therefore, the decision was made to divide the “Transazia”. Cosmetic business went to partners Galitsky, and he founded the firm “Tander” in 1994. He established the first distribution centre in 1998.
In 2000 Galistky ventured into the retail business called Magnit, which today is the largest network of stores in Russia. The first store “Magnit” appeared in Krasnodar in the discounter format. Galistky immediately began to position his points as a network of food stores with low prices. The format was very much in demand, and Galistky began to actively develop the network. He rented small rooms for shops, which he now positioned as “shops near a house with low prices.” He began developing the network by quiet expansion into small towns. He tried not to compete with large grocery retailers. And the strategy was very successful. Five years later, the network turnover reached 1.6 billion dollars.Galitsky did not stop there and in 2006, he brought the company to an IPO and attracted investments for 368 million dollars. By 2006, the value of the company was rated at $1.9 billion.
The share of Galistky in the company was 58%, and his permanent partner Alexei Bogachev – 15%. The funds received were used to develop the network, and in 2007 it had 1,900 stores all over the country. “Magnit” grows with new formats – hypermarkets, supermarkets, mini-stores.
In 2008, the network once again goes to the stock exchange, and in 2010 the number of its outlets grows to 4 thousand. In 2011, the stores of different formats under the name “Magnit” became already 5 thousand. In 2011, Magnit built a greenhouse facility to grow and distribute its own organic vegetables, 220,000 people are employed in this business. In 2013, Magnit became the leader in terms of turnover and the number of stores in the country, ahead of its eternal rival – the network Pyaterochka. In 2014, Galytsky reduced his stake by selling part in order to get money to finance other projects and in 2014, Magnit had 7,567 convenient stores, 763 cosmetic stores, 169 hypermarkets across Russia. He has invested in advertising and agriculture. By 2015, Magnit has grown to 120,000 points in various formats.
In 2008 Sergei Galitsky driven by his love for football founded the FC Krasnodar Soccer team which competes in the Russian Premier League. Galitsky invested in the team by building a state of art stadium and training facility. In 2013 he started a farm team in third division as feeder for young talent. The Academy trainees are taught Chess. Today she belongs to the elite of Russian football. He invests about $40 million a year in the team, but at the same time, he says, this is not a business project, but a great pleasure for him.
Sergey Galitsky is married to Viktoria Galitsky. He uses his wife’s family name. His original name is Sergei Arutyunian. They have a daughter, Polina Galitsky. The family lives in Krasnodar. Sergey owns a yacht and a business jet.
Sergey Galitsky was awarded “Business of the Year” at the ceremony of GQ magazine’s Person of the Year awards.