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With low prices and wide variety of products on offer, discounters continues to be very appealing to many consumers. Over the last decade, discounters have seen significant growth, growth so significant that eventually discounters became the biggest modern grocery retail channel in terms of value sales, a position it continues to hold in 2019.
In recent years, prices of fast-moving consumer goods stagnated. In 2017, however, prices began rising, with higher prices becoming more pronounced in 2018 and that trend continuing in 2019.
In past years, discounters sought to stimulate growth by opening as many outlets as quickly as possible. In many instances, discounters’ expansion strategies were supported by loans from their suppliers.
Leading grocery retailer Shufersal Ltd is also the leader in value share in the discounters channel in 2019, as well as the channel leader in terms of the number of outlets it operates, including Shufersal Deal and Yesh outlets. Shufersal Ltd benefits from its significant logistics capabilities and the strong negotiation position it holds when it deals with suppliers.
In 2019, Rami Levy Shivuk Hashikma, with its Rami Levy chain, ranks second in the discounters channel in terms of value sales, a position it has held throughout the review period. The company ranks fourth in 2019 in terms of the number of outlets in operation, and it enjoys a remarkable rate in sales per square metre.
During the review period, the rapid evolution of online grocery shopping tended to leave discounters behind. E-commerce typically requires high levels of initial investment in infrastructure and significant organisational adjustments.
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Discover the latest market trends and uncover sources of future market growth for the Discounters industry in Israel with research from Euromonitor's team of in-country analysts.
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This industry report originates from Passport, our Retailing market research database.
Gain competitive intelligence about market leaders. Track key industry trends, opportunities and threats. Inform your marketing, brand, strategy and market development, sales and supply functions.