Discounters significantly benefited from the pandemic in 2020 as greater at-home consumption and increasing price sensitivity amongst local consumers meant that they sought value for money. This resulted in double-digit current value growth for the channel in 2020, making it the strongest performer in grocery retailers, as this format is perceived as offering more competitive, and therefore more affordable, prices.
Discounter chain Victory, ranked second in terms of overall outlet numbers in the channel, is focusing on expanding its offer of premium meat offered by its in-store butchers, including cuts popular with Israelis such as sirloin, rump steak and prime rib. The chain is placing a greater emphasis on highlighting the quality of its meat and variety within its stores, addressing increasing premiumisation trends in Israel as local consumers seek higher-quality ingredients but at lower prices compared to competitors.
There is a large gap between average basket prices at discounters compared to other retailers which helps contribute to the category's growth, with the channel’s private label lines gaining significant attention due to rising price sensitivity. In May 2021, Rami Levy Online was found to offer the most affordable basic product basket, based on data from the Consumer Council from the Prices website and compiled by the Ministry of Economy and Industry and the Central Bureau of Statistics.
Discounters is predicted to remain the most popular grocery retailing format in Israel due to its competitive and attractive prices, and wide range of products. Consumers choosing a grocery store typically consider two primary factors: prices and location.
Shufersal Ltd, through its Shufersal Deal banner, continued to lead discounters in 2021 across all indicators. However, the retailer has been gradually losing share to smaller players under “others”, leading to the closure of Shufersal Deal outlets in 2017 and then again in 2020.
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Understand the latest market trends and future growth opportunities for the Discounters industry in Israel with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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Discounters are chained retail outlets typically with a selling space of between 400 and 2,500 square metres. Stores have a primary focus on selling a limited range of foods, beverages, tobacco and non-groceries at budget prices, regularly via private label. Discounters can be classified as hard discounters and soft discounters. Hard discounters, first introduced by Aldi in Germany, are also known as limited-line discounters. Stores are typically 400-900 square metres and stock fewer than 1,000 product lines, largely in packaged groceries. Product range available is predominantly made up of private-label brands. Soft discounters are usually slightly larger than hard discounters, and are also known as extended-range discounters. Stores typically stock 1,000-4,000 product lines. As well as private-label and budget brands, stores commonly carry leading brands at discounted prices. Example brands include Aldi, Lidl, and Dia.See All of Our Definitions
This report originates from Passport, our Discounters research and analysis database.
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