Discounters in Israel

PROSPECTS

Discounters remains a popular channel despite a shift to convenience stores

The discounters concept is very appealing to consumers – the low prices and wide variety of products offered provide a positive and rich shopping experience. Therefore, over the last decade discounters saw dramatic growth and became the biggest grocery retail channel.

Price rises

In recent years, fmcg saw overall price stagnation; however, in 2017 prices began climbing again, with the rise becoming more pronounced in 2018. Price rises were the result of several factors.

The sales area is saturated

To stimulate growth in previous years, many new outlets opened in discounters. Companies seized the growth opportunities in the channel by opening more stores, supported by loans from their suppliers.

COMPETITIVE LANDSCAPE

Shufersal leads discounters

Shufersal, the leading grocery retailer, also continued to lead discounters in value terms in 2018. In recent years there was a continuous slow decrease in the number of Shufersal Deal outlets.

Activity by Rami Levy

Rami Levy Shivuk Hashikma was the second player in discounters in value terms in 2018, benefiting from remarkable sales per sq m. Rami Levy has managed to position itself as a low-price retailer which contributes to society by encouraging price competition.

Internet retailing

The rapid evolution of online grocery retailing has left discounters behind. Becoming a dominant online grocery retailer requires large investment in infrastructure and significant overall organisational adjustments; moreover, in the first stage of operation, online retailing results in high losses.

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