Moscow, 20 July 2026 – X5 announces the acquisition of the distribution business held by Gorod 77 Group. The deal gives X5 full ownership of Gorod 77 LLC, Ecowine LLC and Alco Nord LLC, which supply products across Russia’s Central and North-Western regions. The acquisition aims to bolster X5’s logistics infrastructure, increase the customer base of the Company’s Okolo franchise network and expand the OKOLO.Market platform offering.
“Acquiring Gorod 77’s distribution business is a key move in building up X5’s internal expertise and broadening our product offering. The asset will help us to meet the needs of independent retailers joining the Okolo franchise. Paired with the OKOLO.Market platform model, the distributor’s unique know-how will also unlock new sales channels that are adapted to shifting demand and market dynamics.” -said Igor Pletnev, managing director of Okolo at X5.
X5 entered the distribution market this May with the acquisition of food distributor VKT in Nizhny Novgorod. Gorod 77’s assets and team will reinforce the business with their years of expertise, established infrastructure, and a 5,000-strong client base. An integration programme is set to be rolled out by the end of 2027, covering an expanded geographic footprint for both distributors, a broader product range and the launch of a Big Shelf pilot, which will enable X5 customers to purchase an extended assortment through a pre-order model.
The founder of Gorod 77, Nikolay Laushkin, will oversee integration and synergy with X5, an approach that will ensure business continuity, seamless engagement with key partners, and team retention.
The Okolo franchise targets experienced retailers already in the business. Franchisees connect with X5 through the OKOLO.Market B2B platform – a classifieds-style marketplace that brings together X5 products and products from numerous independent sellers in one spot. Today, over 7,600 stores operate under the Okolo brand across 55 Russian regions, with plans to expand that footprint to 60 regions by the end of 2026.
According to the INFOLine analytics agency, X5’s Okolo franchise ranked first in retail revenue among store chains by the end of 2025, and became the leader in the number of outlets among direct franchising chains after the first four months of 2026.