In our country, there are not many oligarchs who created a business from scratch, without participating in the sale of any raw materials. One of these is Sergey Galitsky (Magnit). The biography of a businessman is a unique story about how a person made himself, without participating in the privatization of factories or the sale of resources abroad. His personal story is an example of determination and hard work. Let's talk about how the owner of the Magnit network Sergey Galitsky was formed and grew. The biography of the entrepreneur will be interesting to those who dream about their business and are looking for their own path in life.
Childhood
Arutyunyan (Galitsky) Sergey Nikolaevich was born, whose biography is the subject of our article, on August 14, 1967 in the village of Lazarevskoye, near Sochi. Despite the surname, the boy grew up in a completely Russian environment. According to him, it contains only 25% of Armenian blood, and even the language of this nation, Sergei does not know, but today he is proud of his origin. Since childhood, the boy had a great passion for football, he studied in the section, played with friends in the yard. But he realized in time that he had no future in this sport. Another of his childhood hobbies is chess. But here, with all his prudence, he realized that he did not become a world champion. And the desire to be the first was inherent in him since childhood. Therefore, Sergey decided to take place in his studies. Although he did not become an excellent student, he was very successful in the exact sciences. At school, Sergei studied well, was an active participant in public life.
Entry into adulthood
In Soviet times, military service was a vital step for many young men, and Sergey Galitsky also belonged to such young people. Biography, the guy's parents were quite typical for that time. The origin and beginning of Sergey’s life did not portend any great achievements. All that he had was himself, his sanity and industriousness. Therefore, he decided to start his adult life with service in the armed forces. Two years in the army helped him to clearly define his priorities and life goals.
Education
After demobilization, Sergey Galitsky, whose biography developed according to a scenario quite typical for that time, enters Kuban University, at the Faculty of Economics. Military service gave him certain benefits, and Sergei easily entered a prestigious university. He studied well and even wrote a second year article on financial liquidity in the famous professional magazine “Finance and Credit”. The editors recognized Sergey’s article as serious and published it. In the financial world of Krasnodar, this publication made a splash, and Galitsky was invited to an interview at one of the banks in the city. If before that Sergey had to earn money as a loader, now he was offered to work as a deputy managing bank. He successfully combined work with studies and successfully received a diploma of higher education, which gave him opportunities for professional growth.
Failed banker
After graduating from the university, Galitsky worked for a year at the bank, but the young specialist quickly began to realize that this institution was not at all what he would like to do in the future. Later in an interview, Sergei said that the bank was actually a “small money-changer”. Therefore, a year after graduation, Galitsky decided to quit the bank. According to him, he left because "he did not want to attend his funeral."
First Entrepreneurship Experience
At this time, the country saw a boom in private entrepreneurship, everyone around started different types of business, dreamed of getting rich. These moods swept over Sergey. After leaving the bank, he, together with several classmates, creates the Transasia company, the initial capital was 30 thousand dollars, which Sergey took on credit thanks to his banking acquaintances. The company engaged in the wholesale supply of cosmetics and household chemicals. At first, according to Galitsky, the company was balancing between a financial abyss and a small profit. But soon the guys managed to become the only distributor in the Krasnodar Territory of the world's largest company Procter & Gambl. The company began to bring stable income and prospects. But soon Procter & Gambl demanded that a separate company work with her. Therefore, the decision came to the section "Transasia". The cosmetic business went to Galitsky’s partners, and he got the Thunder firm. For several years he looked for his niche in the market, calculated options. Entering a new market helped him with a business instinct and unique talent to make money.
"Magnet"
In 1998, Sergey Galitsky, whose biography has been connected with food retail for a long time , opens his first grocery store in Cash & Carry format. The point was profitable, but did not give great prospects for development. And two years later, Galitsky decided to change the format. In 2000, the first Magnit store appeared in Krasnodar in a discounter format. Sergey immediately began to position his points as a network of grocery stores with low prices.
The format turned out to be very popular, and Sergey began to actively develop the network. He rented small rooms for shops, which he now positioned as "shops at home with low prices." He began the development of the network by quiet expansion into small cities. He tried not to compete with large grocery chain retailers. And the strategy has been very successful. Five years later, the network’s turnover reached $ 1.6 billion.
Galitsky did not stop there and in 2006 brought the company to IPO and attracted investments of $ 368 million. Sergey's share in the company was 58%, and his permanent partner Alexei Bogachev - 15%. The funds received were allocated for the development of the network, and in 2007 it totaled 1,900 stores throughout the country. "Magnet" is growing in new formats - hypermarkets, supermarkets, convenience stores.
In 2008, the network once again enters the exchange, and in 2010 the number of its outlets grows to 4 thousand. In 2011, stores of various formats under the name "Magnet" became already 5 thousand. The company once again resorts to selling shares, which reduces Galitsky’s stake to 36%, but he remains the main owner of the network. This is his principled position, Sergei believes that the business should have one owner.
In 2013, Magnit became the leader in terms of turnover and the number of stores in the country, ahead of its eternal competitor - the Pyaterochka chain. In 2014, Galitsky reduced his stake, selling part in order to receive money to finance his other projects. By 2015, Magnit grew to 120 thousand points of various formats.
condition
In 2016, the founder of Magnit, Sergei Galitsky, whose biography is strongly associated with grocery stores, is the largest shareholder in the network, he owns 37% of the shares. In 2016, his fortune, according to Forbes magazine, totaled $ 5,700 million, which is the 17th line in the list of Russia's richest entrepreneurs. It should be noted that for Galitsky this is not the best indicator, in 2014 he occupied the 10th line with a fortune of $ 10,300 million. A businessman often says that he experiences two pleasures in life: when he makes money and when he spends it. In recent years, he spends a lot of money on various projects. Sergei also repeatedly said that he intends to spend his entire fortune during his lifetime.
Galitsky - Head
Large entrepreneurs always develop their own unique leadership style, and Sergey Galitsky is no exception. The biography of a businessman proves that he is an extraordinary person. And this is confirmed by the impressions of its partners and employees. Galitsky is a strategist, he always looks far ahead, and trusts tactics with managers. He knows how to hire high-class employees and entrusts them with solving problems of his level. Galitsky is a brave businessman; he loves risky, extraordinary decisions and is not afraid to implement them. At the same time, Sergey is a rather tough leader, he is not ready to make concessions, he knows how to motivate employees to do good work. So, the top management of the company owns an 8% stake in Magnit, so it is interested in the profit of stores.
Football
Billionaire Sergey Galitsky, whose biography was formed as in a fairy tale, did not forget about his childhood hobbies. In 2008, he bought a very average football team Krasnodar and invested a lot of money in it. Today it belongs to the elite of Russian football. Galitsky finances a school for beginner football players of Krasnodar, built an excellent stadium for training and games of his team. He invests about $ 40 million a year in the team, but at the same time, according to him, this is not a business project, but a great pleasure for him.
Personal life
The owner of Magnit Sergey Galitsky, whose biography is the subject of our consideration, is married. His wife was a former classmate Victoria. She used to be an accountant, but for many years she has not been working, performing the “hard work” of the oligarch’s wife. The couple has a daughter, Polina. She studies at the same university where her parents once studied. The girl is among the ten richest Russian heirs. But at the same time, all her friends note that Polina does not have stellar manners at all.