Retailing in Israel
Euromonitor International's Retailing in Israel report offers insight into key trends and developments affecting the industry. The report examines all retail channels to provide sector insight. Channels include department stores, food retailers, health and beauty retailers, clothing and footwear retailers, home furniture and household goods retailers, durable goods retailers, and leisure and personal goods retailers. There are profiles of leading retailers, with analysis of their performance and the challenges they face. There is also analysis of alternative selling channels (kiosks, homeshopping, internet retailing, service stations, vending and direct selling, as available).
Buy online to access strategic market analysis and an interactive statistical database of retail value sales, number of sites/outlets, retail surface area and employment in retailing.
Tables: 171 | Publication date: Jun 2009
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Non-store retailing; Store-based retailing
Executive summary
Mixed trends in 2008 as the economic slowdown hits towards the year end
The first three quarters of 2008 were a direct continuation of 2007 and the review period in terms of fast growth and development of retail formats that are associated with lifestyle, convenience and health and beauty. Forecourt retailers, convenience stores, supermarkets and drugstores are examples of fast-growing formats in 2008. Towards the year end, as the impact of the global financial crisis was felt in the local market, these trends were replaced by consumers’ preferences for retailers that offered lower prices such as discounters, DIY and department stores. The convenience trend that drove consumers to shop within their neighbourhood areas came to a sudden halt in mid-2008, as consumers started to seek out cheaper, larger and more remote retail formats.
Acquisitions become a critical survival tool in 2008
The shift towards the cheaper retailers created a more competitive environment, especially among grocery retailers. Due to a highly consolidated retail competitive environment, where most formats are controlled by a few leading players, size advantage (i.e. a certain number of outlets and sales) became a critical factor, not just for success, but for survival. Retailers have realised that in order to achieve this size advantage which gives them better bargaining power with suppliers/banks/franchisers, cheaper prices and higher profits they have to acquire existing retailers. Therefore, in 2007, but mainly in 2008 there were an extraordinary number of acquisitions within all retail formats. Acquisitions within retail are used either to enter new product categories, or to gain size advantage.
Store-based retailers dominate the market
The small size of Israel along with a highly developed retail market creates a very tough store-based retail market compared to non-store retailing. The vast majority of products offered through non-store retailers can be found in store-based retailers, which are perceived as more reliable and offering a better shopping experience, but most importantly with attractive prices. The country’s small size makes store-based retailers very accessible. Moreover, local consumers are highly suspicious regarding card not present transactions which makes it even harder to sell online or through homeshopping channels. As a whole, non-store retailing is growing fast, but it continues to have an insignificant impact on the overall retail market.
Price, price, price
The future retailing environment is expected to be very competitive, with price being the main purchasing decision factor for consumers. Retailers should prepare for price wars, deep discounts and lower consumer loyalty. This will result in significantly lower value growth rates throughout the forecast period for both grocery and non-grocery retailers.
Table of contents
RETAILING IN ISRAEL : MARKET INSIGHT
EXECUTIVE SUMMARY
Mixed trends in 2008 as the economic slowdown hits towards the year end
Acquisitions become a critical survival tool in 2008
Store-based retailers dominate the market
Price, price, price
KEY TRENDS AND DEVELOPMENTS
Economy slows down towards the end of 2008
Private label making a positive impact
Customer Clubs and Store Cards: Increasing Brand Loyalty
Neighbourhood shopping - does the hottest recent retailing trend come to a sudden stop?
Mergers and acquisitions – the way to create size advantage
Grocery retailers “discover” non-grocery products, and vice versa
MARKET INDICATORS
Table 1 Employment in Retailing 2003-2008
MARKET DATA
Table 2 Sales in Retailing by Sector: Value 2003-2008
Table 3 Sales in Retailing by Sector: % Value Growth 2003-2008
Table 4 Sales in Retailing by Grocery vs Non-Grocery 2005-2008
Table 5 Sales in Store-Based Retailing by Sector: Value 2003-2008
Table 6 Sales in Store-Based Retailing by Sector: % Value Growth 2003-2008
Table 7 Sales in Non-store Retailing by Sector: Value 2003-2008
Table 8 Sales in Non-store Retailing by Sector: % Value Growth 2003-2008
Table 9 Retailing Company Shares: % Value 2004-2008
Table 10 Grocery Retailers Company Shares: % Value 2004-2008
Table 11 Grocery Retailers Brand Shares: % Value 2005-2008
Table 12 Non-Grocery Retailers Company Shares: % Value 2004-2008
Table 13 Non-Grocery Retailers Brand Shares: % Value 2005-2008
Table 14 Non-store Retailing Company Shares: % Value 2004-2008
Table 15 Non-store Retailing Brand Shares: % Value 2005-2008
Table 16 Forecast Sales in Retailing by Sector: Value 2008-2013
Table 17 Forecast Sales in Retailing by Sector: % Value Growth 2008-2013
Table 18 Forecast Sales in Store-Based Retailing by Sector: Value 2008-2013
Table 19 Forecast Sales in Store-Based Retailing by Sector: % Value Growth 2008-2013
Table 20 Forecast Sales in Non-store Retailing by Sector: Value 2008-2013
Table 21 Forecast Sales in Non-store Retailing by Sector: % Value Growth 2008-2013
APPENDIX
Operating environment
Cash-and-Carry/Warehouse Clubs
DEFINITIONS
Summary 1 Research Sources
LOCAL COMPANY PROFILES - ISRAEL
AR ZIM DIRECT MARKETING LTD - RETAILING - ISRAEL
STRATEGIC DIRECTION
KEY FACTS
Summary 2 AR Zim Direct Marketing Ltd: Key Facts
Summary 3 AR Zim Direct Marketing Ltd: Operational Indicators
COMPANY BACKGROUND
PRIVATE LABEL
Summary 4 AR Zim Direct Marketing Ltd: Private Label Portfolio
COMPETITIVE POSITIONING
Summary 5 AR Zim Direct Marketing Ltd: Competitive Position 2008
BLUE SQUARE ISRAEL LTD - RETAILING - ISRAEL
STRATEGIC DIRECTION
KEY FACTS
Summary 6 Blue Square Israel Ltd: Key Facts
Summary 7 Blue Square Israel Ltd: Operational Indicators
COMPANY BACKGROUND
Chart 1 Blue Square Israel Ltd: Mega Bair in Tel Aviv
PRIVATE LABEL
COMPETITIVE POSITIONING
Summary 8 Blue Square Israel ltd: Competitive Position 2008
CASTRO MODEL LTD - RETAILING - ISRAEL
STRATEGIC DIRECTION
KEY FACTS
Summary 9 Castro Model Ltd: Key Facts
Summary 10 Castro Model Ltd: Operational Indicators
COMPANY BACKGROUND
Chart 2 Castro Model Ltd: Castro in Tel Aviv
PRIVATE LABEL
COMPETITIVE POSITIONING
Summary 11 Castro Model Ltd: Competitive Position 2008
FOX WIESEL LTD - RETAILING - ISRAEL
STRATEGIC DIRECTION
KEY FACTS
Summary 12 Fox-Wiesel Ltd: Key Facts
Summary 13 Fox-Wiesel Ltd: Operational Indicators
COMPANY BACKGROUND
PRIVATE LABEL
Summary 14 Fox-Wiesel Ltd: Private Label Portfolio
COMPETITIVE POSITIONING
Summary 15 Fox-Wiesel Ltd: Competitive Position 2008
HOME CENTERS (DIY) LTD - RETAILING - ISRAEL
STRATEGIC DIRECTION
KEY FACTS
Summary 16 Home Centers (DIY) Ltd: Key Facts
Summary 17 Home Centers (DIY) Ltd: Operational Indicators
COMPANY BACKGROUND
Chart 3 Home Centers (DIY) Ltd: Home Centers DIY in Tel Aviv
PRIVATE LABEL
Summary 18 Home Centers (DIY) Ltd: Private Label Portfolio
COMPETITIVE POSITIONING
Summary 19 Home Centers (DIY) Ltd: Competitive Position 2008
NEW HAMASHBIR LAZARCHAN LTD - RETAILING - ISRAEL
STRATEGIC DIRECTION
KEY FACTS
Summary 20 New Hamashbir Lazarchan Ltd: Key Facts
Summary 21 New Hamashbir Lazarchan Ltd: Operational Indicators
COMPANY BACKGROUND
PRIVATE LABEL
COMPETITIVE POSITIONING
Summary 22 New Hamashbir Lazarchan: Competitive Position 2008
SUPER-PHARM (ISRAEL) LTD - RETAILING - ISRAEL
STRATEGIC DIRECTION
KEY FACTS
Summary 23 Super-Pharm Ltd: Key Facts
Summary 24 Super-Pharm Ltd: Operational Indicators
COMPANY BACKGROUND
Chart 4 Super-Pharm Ltd: Super Pharm in Tel Aviv
PRIVATE LABEL
Summary 25 Super-Pharm Ltd: Private Label Portfolio
COMPETITIVE POSITIONING
Summary 26 Super-Pharm Ltd: Competitive Position 2008
SUPER-SOL LTD - RETAILING - ISRAEL
STRATEGIC DIRECTION
KEY FACTS
Summary 27 Super-Sol Ltd: Key Facts
Summary 28 Super-Sol Ltd: Operational Indicators
COMPANY BACKGROUND
PRIVATE LABEL
Summary 29 Super-Sol ltd: Private Label Portfolio
COMPETITIVE POSITIONING
Summary 30 Super-Sol ltd: Competitive Position 2008
HYPERMARKETS IN ISRAEL
HEADLINES
OVERVIEW
SECTOR DATA
Table 22 Hypermarkets: Value Sales, Outlets and Selling Space 2003-2008
Table 23 Hypermarkets: Value Sales, Outlets and Selling Space: % Growth 2003-2008
Table 24 Hypermarkets Company Shares by Value 2004-2008
Table 25 Hypermarkets Brand Shares by Value 2005-2008
Table 26 Hypermarkets Brand Shares by Outlets 2005-2008
Table 27 Hypermarkets Brand Shares by Selling Space 2005-2008
Table 28 Hypermarkets Forecasts: Value Sales, Outlets and Selling Space 2008-2013
Table 29 Hypermarkets Forecasts: Value Sales, Outlets and Selling Space: % Growth 2008-2013
SUPERMARKETS IN ISRAEL
HEADLINES
OVERVIEW
SECTOR FORMATS
Chart 5 Supermarkets: Mega Bair in Tel Aviv
SECTOR DATA
Table 30 Supermarkets: Value Sales, Outlets and Selling Space 2003-2008
Table 31 Supermarkets: Value Sales, Outlets and Selling Space: % Growth 2003-2008
Table 32 Supermarkets Company Shares by Value 2004-2008
Table 33 Supermarkets Brand Shares by Value 2005-2008
Table 34 Supermarkets Brand Shares by Outlets 2005-2008
Table 35 Supermarkets Brand Shares by Selling Space 2005-2008
Table 36 Supermarkets Forecasts: Value Sales, Outlets and Selling Space 2008-2013
Table 37 Supermarkets Forecasts: Value Sales, Outlets and Selling Space: % Growth 2008-2013
DISCOUNTERS IN ISRAEL
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 38 Discounters: Value Sales, Outlets and Selling Space 2003-2008
Table 39 Discounters: Value Sales, Outlets and Selling Space: % Growth 2003-2008
Table 40 Discounters Company Shares by Value 2004-2008
Table 41 Discounters Brand Shares by Value 2005-2008
Table 42 Discounters Brand Shares by Outlets 2005-2008
Table 43 Discounters Brand Shares by Selling Space 2005-2008
Table 44 Discounters Forecasts: Value Sales, Outlets and Selling Space 2008-2013
Table 45 Discounters Forecasts: Value Sales, Outlets and Selling Space: % Growth 2008-2013
CONVENIENCE STORES IN ISRAEL
HEADLINES
OVERVIEW
SECTOR FORMATS
Chart 6 Convenience Stores: AM:PM in Tel Aviv
SECTOR DATA
Table 46 Convenience Stores: Value Sales, Outlets and Selling Space 2003-2008
Table 47 Convenience Stores: Value Sales, Outlets and Selling Space: % Growth 2003-2008
Table 48 Convenience Stores Company Shares by Value 2004-2008
Table 49 Convenience Stores Brand Shares by Value 2005-2008
Table 50 Convenience Stores Brand Shares by Outlets 2005-2008
Table 51 Convenience Stores Brand Shares by Selling Space 2005-2008
Table 52 Convenience Stores Forecasts: Value Sales, Outlets and Selling Space 2008-2013
Table 53 Convenience Stores Forecasts: Value Sales, Outlets and Selling Space: % Growth 2008-2013
FORECOURT RETAILERS IN ISRAEL
HEADLINES
OVERVIEW
SECTOR FORMATS
Chart 7 Forecourt Retailers: Alonit in Tel Aviv
SECTOR DATA
Table 54 Forecourt Retailers: Value Sales, Outlets and Selling Space 2003-2008
Table 55 Forecourt Retailers: Value Sales, Outlets and Selling Space: % Growth 2003-2008
Table 56 Forecourt Retailers Company Shares by Value 2004-2008
Table 57 Forecourt Retailers Brand Shares by Value 2005-2008
Table 58 Forecourt Retailers Brand Shares by Outlets 2005-2008
Table 59 Forecourt Retailers Brand Shares by Selling Space 2005-2008
Table 60 Forecourt Retailers Forecasts: Value Sales, Outlets and Selling Space 2008-2013
Table 61 Forecourt Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2008-2013
MIXED RETAILERS IN ISRAEL
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR FORMATS
Chart 8 Mixed Retailers: New Hamashbir Lazarchan in Tel Aviv
SECTOR DATA
Table 62 Mixed Retailers: Value Sales, Outlets and Selling Space 2003-2008
Table 63 Mixed Retailers: Value Sales, Outlets and Selling Space: % Growth 2003-2008
Table 64 Mixed Retailers Company Shares by Value 2004-2008
Table 65 Mixed Retailers Brand Shares by Value 2005-2008
Table 66 Mixed Retailers Brand Shares by Outlets 2005-2008
Table 67 Mixed Retailers Brand Shares by Selling Space 2005-2008
Table 68 Mixed Retailers Forecasts: Value Sales, Outlets and Selling Space 2008-2013
Table 69 Mixed Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2008-2013
HEALTH AND BEAUTY SPECIALIST RETAILERS IN ISRAEL
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR FORMATS
Chart 9 Health and Beauty Specialist Retailers: Sabon Sheel Paam in Tel Aviv
SECTOR DATA
Table 70 Health and Beauty Retailers: Value Sales, Outlets and Selling Space 2003-2008
Table 71 Health and Beauty Retailers: Value Sales, Outlets and Selling Space: % Growth 2003-2008
Table 72 Health and Beauty Retailers Company Shares by Value 2004-2008
Table 73 Health and Beauty Retailers Brand Shares by Value 2005-2008
Table 74 Health and Beauty Retailers Brand Shares by Outlets 2005-2008
Table 75 Health and Beauty Retailers Brand Shares by Selling Space 2005-2008
Table 76 Health and Beauty Retailers Forecasts: Value Sales, Outlets and Selling Space 2008-2013
Table 77 Health and Beauty Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2008-2013
CLOTHING AND FOOTWEAR SPECIALIST RETAILERS IN ISRAEL
HEADLINES
OVERVIEW
Chart 10 Clothing and Footwear Specialist Retailers: Fox Baby in Tel Aviv
SECTOR DATA
Table 78 Clothing and Footwear Retailers: Value Sales, Outlets and Selling Space 2003-2008
Table 79 Clothing and Footwear Retailers: Value Sales, Outlets and Selling Space: % Growth 2003-2008
Table 80 Clothing and Footwear Retailers Company Shares by Value 2004-2008
Table 81 Clothing and Footwear Retailers Brand Shares by Value 2005-2008
Table 82 Clothing and Footwear Retailers Brand Shares by Outlets 2005-2008
Table 83 Clothing and Footwear Retailers Brand Shares by Selling Space 2005-2008
Table 84 Clothing and Footwear Retailers Forecasts: Value Sales, Outlets and Selling Space 2008-2013
Table 85 Clothing and Footwear Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2008-2013
FURNITURE AND FURNISHINGS STORES IN ISRAEL
HEADLINES
OVERVIEW
SECTOR FORMATS
Chart 11 Furniture and Furnishings Stores: Betili in Tel Aviv
SECTOR DATA
Table 86 Furniture and Furnishings Stores: Value Sales, Outlets and Selling Space 2003-2008
Table 87 Furniture and Furnishings Stores: Value Sales, Outlets and Selling Space: % Growth 2003-2008
Table 88 Furniture and Furnishings Stores Company Shares by Value 2004-2008
Table 89 Furniture and Furnishings Stores Brand Shares by Value 2005-2008
Table 90 Furniture and Furnishings Stores Brand Shares by Outlets 2005-2008
Table 91 Furniture and Furnishings Stores Brand Shares by Selling Space 2005-2008
Table 92 Furniture and Furnishings Stores Forecasts: Value Sales, Outlets and Selling Space 2008-2013
Table 93 Furniture and Furnishings Stores Forecasts: Value Sales, Outlets and Selling Space: % Growth 2008-2013
DIY, HOME IMPROVEMENT AND GARDEN CENTRES IN ISRAEL
HEADLINES
OVERVIEW
SECTOR DATA
Table 94 DIY, Home Improvement and Garden Centres: Value Sales, Outlets and Selling Space 2003-2008
Table 95 DIY, Home Improvement and Garden Centres: Value Sales, Outlets and Selling Space: % Growth 2003-2008
Table 96 DIY, Home Improvement and Garden Centres Company Shares by Value 2004-2008
Table 97 DIY, Home Improvement and Garden Centres Brand Shares by Value 2005-2008
Table 98 DIY, Home Improvement and Garden Centres Brand Shares by Outlets 2005-2008
Table 99 DIY, Home Improvement and Garden Centres Brand Shares by Selling Space 2005-2008
Table 100 DIY, Home Improvement and Garden Centres Forecasts: Value Sales, Outlets and Selling Space 2008-2013
Table 101 DIY, Home Improvement and Garden Centres Forecasts: Value Sales, Outlets and Selling Space: % Growth 2008-2013
ELECTRONICS AND APPLIANCE SPECIALIST RETAILERS IN ISRAEL
HEADLINES
OVERVIEW
SECTOR FORMATS
Chart 12 Electronics and Appliance Specialist Retailers: Shekem Electric in Tel Aviv
SECTOR DATA
Table 102 Electronics and Appliance Specialist Retailers: Value Sales, Outlets and Selling Space 2003-2008
Table 103 Electronics and Appliance Specialist Retailers: Value Sales, Outlets and Selling Space: % Growth 2003-2008
Table 104 Electronics and Appliance Specialist Retailers Company Shares by Value 2004-2008
Table 105 Electronics and Appliance Specialist Retailers Brand Shares by Value 2005-2008
Table 106 Electronics and Appliance Specialist Retailers Brand Shares by Outlets 2005-2008
Table 107 Electronics and Appliance Specialist Retailers Brand Shares by Selling Space 2005-2008
Table 108 Electronics and Appliance Specialist Retailers Forecasts: Value Sales, Outlets and Selling Space 2008-2013
Table 109 Electronics and Appliance Specialist Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2008-2013
LEISURE AND PERSONAL GOODS SPECIALIST RETAILERS IN ISRAEL
HEADLINES
OVERVIEW
SECTOR DATA
Table 110 Leisure and Personal Goods Specialist Retailers: Value Sales, Outlets and Selling Space 2003-2008
Table 111 Leisure and Personal Goods Specialist Retailers: Value Sales, Outlets and Selling Space: % Growth 2003-2008
Table 112 Leisure and Personal Goods Specialist Retailers Company Shares by Value 2004-2008
Table 113 Leisure and Personal Goods Specialist Retailers Brand Shares by Value 2005-2008
Table 114 Leisure and Personal Goods Specialist Retailers Brand Shares by Outlets 2005-2008
Table 115 Leisure and Personal Goods Specialist Retailers Brand Shares by Selling Space 2005-2008
Table 116 Leisure and Personal Goods Specialist Retailers Forecasts: Value Sales, Outlets and Selling Space 2008-2013
Table 117 Leisure and Personal Goods Specialist Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2008-2013
VENDING IN ISRAEL
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 118 Vending: Value 2003-2008
Table 119 Vending: % Value Growth 2003-2008
Table 120 Vending Company Shares by Value 2004-2008
Table 121 Vending Brand Shares by Value 2005-2008
Table 122 Vending Forecasts: Value 2008-2013
Table 123 Vending Forecasts: % Value Growth 2008-2013
HOMESHOPPING IN ISRAEL
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 124 Homeshopping: Value 2003-2008
Table 125 Homeshopping: % Value Growth 2003-2008
Table 126 Homeshopping Company Shares by Value 2004-2008
Table 127 Homeshopping Brand Shares by Value 2005-2008
Table 128 Homeshopping Forecasts: Value 2008-2013
Table 129 Homeshopping Forecasts: % Value Growth 2008-2013
INTERNET RETAILING IN ISRAEL
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 130 Internet Retailing: Value 2003-2008
Table 131 Internet Retailing: % Value Growth 2003-2008
Table 132 Internet Retailing Company Shares by Value 2004-2008
Table 133 Internet Retailing Brand Shares by Value 2005-2008
Table 134 Internet Retailing Forecasts: Value 2008-2013
Table 135 Internet Retailing Forecasts: % Value Growth 2008-2013
DIRECT SELLING IN ISRAEL
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 136 Direct Selling: Value 2003-2008
Table 137 Direct Selling: % Value Growth 2003-2008
Table 138 Direct Selling Company Shares by Value 2004-2008
Table 139 Direct Selling Brand Shares by Value 2005-2008
Table 140 Direct Selling Forecasts: Value 2008-2013
Table 141 Direct Selling Forecasts: % Value Growth 2008-2013