Efrat Nomberg Yunger | mako | published 09/05/2023 09:00 | updated 09/05/2023 09:11

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After twelve months of waiting it is finally happening: French chain Carrefour is making Aliyah and opening 50 branches simultaneously. The new branches, replacing former Yeinot Bitan stores, have already been designed in the international chain’s colors, and boast a private “best price” label alongside well-known Israeli brands. But can Carrefour affect a price revolution, and give Shufersal and other strong competitors such as Victory, Rami Levi, Osher Ad and Yochananof a real fight?

Like the rest of the Israeli chains, Carrefour boasts a private label. In addition, Carrefour stores will offer well-known products that Israeli consumers are still willing to pay more for. While all eyes are on the new chain, which, as its VP of Marketing Shai Ben Avi has promised, is expected to “break the market”, we have compared the prices of notable products offered in Carrefour’s private label to Shufersal’s and Rami Levi’s private labels, and of course to the prices of each category’s leading brand.

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As our comparison reveals, Carrefour’s prices are much more affordable than the leading brand and Shufersal’s private label. However, the competition between the new chain and Rami Levi is fierce. Carrefour representatives stress that they offer quality products manufactured in Europe, and are sold for a lot less than the leading brands.

How can Carrefour guarantee competitive prices considering the costs of shipping, regulation and manufacturing Kosher products for Israel’s unique market? In an interview for Globes, Carrefour Israel CEO Uri Kilstein explained that he is counting mostly on the reform that is already in effect, allowing international retail chains that open Israeli branches to import hundreds of products without inspection – shortening the import process and saving on costs.

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Carrefour’s strength in comparison to Israeli chains is its immense variety: 400 cleaning, toiletry, and food products, as well as approximately 600 non-food products under Carrefour’s private label, in addition to the intent to parallel-import leading brands at lower prices than the official importers. However, it is clear that prices here will not match prices in France due to the cost of import to Israel, which includes inspections and approvals by kosher authorities, the Standards Institution of Israel, the Ministry of Health and the Ministry of Agriculture, as well as customs clearance.

The new chain’s most significant challenge will be meat, chicken, milk, and cheese products, as at the moment Carrefour is expected to rely mostly on local produce, because of kosher and regulation requirements. In addition, Carrefour will have to contend with the perceptions of Israeli consumers, who view low prices as a sign of lower quality, and to adjust to the Israeli market that prefers the well-known over innovation and adventure.

True competition will commence when Shufersal, who is currently awaiting approval from the Competition Authority, opens its franchise stores under Dutch brand SPAR. Then we will see whether true change is coming or whether Carrefour will slowly align with Israeli prices.

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Three types of branches

Carrefour International has 14 thousand branches in 49 countries excluding Israel, and its sales turnover is approximately €81 billion per year. Because Israel is the 50th country the chain has expanded into, Carrefour International favored the opening of 50 stores simultaneously, scattered all over Israel. By the end of the year this number will increase to 80-100 branches.

Branches will be opened in three formats, according to Carrefour’s system: Carrefour City (neighborhood stores), Carrefour Market (medium-sized branches), and Carrefour Hyper (discount stores). Initially, three Hypermarket branches will be launched in Ra’anana, Netanya, and Beit Shemesh, covering 2,500-4,000 sqm each, in comparison to Market branches covering about 1,200 sqm. City and Market branches will be opened in various locations around Israel.

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Complete Branch List

Or Yehuda – 13 Ha’Mifal St, Or Yehuda

Or Akiva – 2 Ha-Ilan St, Northern Industrial Zone, Or Akiva

Ashdod (Shasha) – 9 HaShayatim St, Ashdod

Ashdod (Rova 4) – 25 Rogozin St, Ashdod

Ashdod (Rova 12) – 14 Tamuz St, Ashdod

Ashkelon Barne’a – 6 Rakhel Leifer Miller St, Ashkelon

Be’er Sheva (Neve Ze’ev) – 32 Johana Jabotinsky, Be’er Sheva

Be’er Sheva (Jerusalem Blvd) – 42 Jerusalem Blvd, Neighborhood 9, Be’er Sheva

Beit Shemesh (Big Center) – Yigal Alon Blvd (Big Center), Beit Shemesh

Givat Shmuel – 1 Ha’Oranim St (commercial center), Givat Shmuel

Givatayim – 71 Weissman St, Givatayim Mall

Ganei Tikva – 78 HaGalil St, Givat Savion

Hod HaSharon – corner of Ben Gurion and Shalom Aleichem, Hod HaSharon

Herzliya (Rabbi Akiva) – 50 Rabbi Akiva, Herzliya

Herzliya (Nof Yam) – 10 Sha’ar HaYam St, Nof Yam, Herzliya

Herzliya (HaTsiyonut Square) – 34 Zohar-Tal St, Herzliya

Herzliya (Neve Amirim) – 82 Ben Gurion St, Herzliya

Zikhron Ya’akov – corner of HaShmura and HaKovshim, Zikhron Ya’akov

Holon – 2 HaMarganit St, Holon

Haifa (Ramot Alon) – 31 Yigal Alon, Haifa

Haifa (Greenberg) – 20 Greenberg, Ramat Begin

Jerusalem – 1 Avizohar St, Ramat Beit HaKerem

Kfar Yona – 44 Menachem Begin, Kfar Yona

Kfar Saba – 2 Ya’akov Cohen St, Kfar Saba

Modi’in – corner of Emek Beit She’an and Yehezkel HaNavi, Modi’in

Mazkeret Batya – 8 Lilakh, Mazkeret Batya

Ma’alot Tarshikha – 3 Shlomo Shrira St, Ma’alot Tarshikha

Matan – 84 Hadar St, Matan

Ness Ziona – 1 Avner Ben Ner, Ness Ziona

Netanya (HaPlada) – 13 HaPlada, Netanya

Netanya (Ir Yamim) – corner of Ben Gurion Blvd and Shazar, Ramat Poleg, Netanya

Netanya (Alonei HaSharon) – 26 Tom Lantos Blvd, Netanya

Netanya (Jerusalem) – 29 Jerusalem St, Netanya

Petah Tikva – 13 Kaplan St, Petah Tikva

Tzur Yitzhak – 9 Nahal Kanne, Tzur Yitzhak

Kiryat Ono – 57 HaNasi, Kiryat Ono

Rosh Ha’Ayin – 77 Yehoshua Bin Noon, Rosh Ha’Ayin

Ramla – 45 Herzl Blvd, Ramla

Ramat HaSharon – 33 Sokolov St, Ramat HaSharon

Ra’anana (Rama) – 12 Zarhin, Ra’anana

Ra’anana (Vatikim) – 11 HaHistadrut St, Ra’anana

Tel Aviv (La Guardia) – 76 La Guardia St, Tel Aviv

Tel Aviv (Dizengoff Square) – 7 Dizengoff, Tel Aviv

Tel Aviv (Maoz Aviv) – 209 Bnei Efraim St, Tel Aviv

Tel Aviv (Weissman) – 20 Weissman St, Tel Aviv

Tel Aviv (HaMashtella) – 9 Dr Elie Tavin, Tel Aviv

Tel Aviv (Tel Baruch) – 8 Aharon Becker, Tel Aviv

Tel Aviv (Ramat HaChayal) – 13 D. M. Marcus St, Tel Aviv

Tel Aviv (Neve Avivim) – 13 Oppenheimer St, Tel Aviv

Tel Aviv (Ramat Aviv Gimel) – 35 Aba Akhime’ir St, Tel Aviv