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Following the trend observed during most of the review period, supermarkets recorded negative current value growth in 2019, a result in large part of intensified competition from players in several other grocery retailing channels. With on-the-go consumption on the rise, grocery channels that encourage and promote impulse purchases—particularly convenience stores and forecourt retailers—are seeing greater growth.
Busy consumers are continuing to seek more convenience when they shop for groceries, choosing, for example, to visit stores located closer to home and/or the workplace. Consumers seeking even greater convenience are increasingly considering a shift to grocery e-commerce, and many are making that choice in 2019 if they haven’t made that choice already.
In 2019, the decline in value sales that has been seen in the supermarket channel in recent years continues, although at a slower rate than in prior year. In part, the decline comes as supermarkets gradually reduce the size of their sales areas.
With its Mega Bair supermarket brand, Yeynot Bitan remains the leader in the supermarkets channel in 2019. Yeynot Bitan acquired Mega Bair in 2016, significantly changing the company as the acquisition doubled Yeynot Bitan’s size and presented a raft of difficulties for management.
Shufersal, currently the country’s largest grocery retailer, ranked second in value sales in the supermarkets channel in 2019, a position it has held throughout the review period. Despite value share stagnating during the review period, Shufersal nevertheless enjoys beneficial economies of scale when dealing with suppliers and has great logistics capabilities.
Mahsani Ashuk, a mid-scale discounter that has a strong presence in the south of Israel, acquired Co-Op Israel as the company filed for bankruptcy in 2019. Mahsani Ashuk will face numerous challenges as it attempts to fold in the acquisition as the operations of the two companies are quite different.
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Discover the latest market trends and uncover sources of future market growth for the Supermarkets 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.