Carrefour Israel prepares for an onslaught: a 40% jump in chain sales

Zvika Schwimmer and the Carrefour network (photo by Doron Barsky, shutterstock)

This coming May, the Israeli food retail world is expected to undergo a shake-up, or at least some kind of shake-up. Elektra should launch Carrefour Israel in full force. Let’s recall, Electra Khema purchased the infrastructure of Mega Wines Beitan and signed an agreement with Carrefour to establish Carrefour Israel on these infrastructures.

So far, Electra has launched only 27 branches of Carrefour Israel and flowed Carrefour products into existing branches of Mega and Beitan wines, as one or one and a half steps before the chains are fully converted to Carrefour Israel, and it seems that the Israeli customer likes this move and we will explain.

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As of today, Electra has fully converted 27 stores to the Carrefour brand and launched several more stores under the “Super” brand, which is an intermediate brand until the full launch of Carrefour. 170 Carrefour products were poured onto the shelves of the chain’s stores and now we will get into the numbers:

Every store of the chain that was converted to the Carrefour brand showed a significant increase in sales, and this means that the 27 stores that have been converted to Carrefour so far have shown a 40% increase in sales, which is very significant, certainly in the world of food retailing, which suffers from the strain of relatively low operating profits, so what plays in this industry is size.

By May it is expected that Electra should convert 50 stores to Carrefour in this order: so far 27 stores have been converted, before Passover another 11 stores will be converted and after Passover another 12 stores will be converted so that in total, near the beginning of May there will be 50 Carrefour Israel stores on the infrastructure of Mega Wines pavilion.

An amazing statistic is the sales per square meter in the converted stores. As of today, the converted stores are selling at a rate of NIS 41,000 per square meter. Higher sales than Shufersal, which as of Such Hashanah stand at NIS 38,000 per square meter (these are net sales per square meter that are not officially published by Shufersal, so this is only an informed estimate), NIS 37,000 per square meter is tasteful and not very far from the sales per square meter Yohannoff’s house sells for NIS 47,000 per square meter, and for comparison, Rami Levy sells for NIS 60,000 per square meter, and Beitan Wines sells for NIS 24,000 per square meter.

So far Carrefour Israel has launched 170 products in Israel and the sales of these products are not bad at all. For example, Carrefour olive oil (Israel is a powerhouse of olive oil consumption) took a market share of the entire segment in Carrefour stores in Israel – of 83%, in the segments of premium chocolate, green tea, cornflakes and espresso capsules – the Carrefour brand took almost half of the sales in the stores the network

Let’s stop it here and explain: if these are the numbers, then Carrefour’s private brand holds a very significant market share in the network compared to the brands known in Israel, and this is very significant when analyzing the taste of the average Israeli and the flexibility of his demand in the relationship between price/quality and brand identity.

At Electra Korvama, when analyzing the quiet launch of Carrefour in Israel, we come to the (obvious) conclusion that after the chain’s “noisy” investment this coming May, the sales share of the private label in the chain’s sales will be of the order of 50%, which is very significant for the chain’s profitability and no less important (and perhaps even more) to the price of the average basket of the average Israeli in Israel.

If we need to think about how to connect all the brands of Electra Consumer in Israel to one customer club that will increase loyalty to the company’s brands and hence offer value propositions to the customer who in turn will realize these value propositions and generate profits for the group, then Electra Consumer intends to soon launch its customer club with a credit card dedicated

The dedicated Electra Consumer credit card will bundle benefits in all the chain’s brands, and this means first and foremost Carrefour Israel, the Adidas store chain in Israel, Elektra Stores, Columbia and 7 ELEVEN, the group’s interesting convenience store chain in Israel.

In the bottom line, Electra’s working assumptions include a forecast that the customer base of the group, which currently has 175,000 credit card holders, will jump and have 275,000 credit card holders, and these are already significant numbers.

The total sales of the Carrefour chain in Israel are expected to reach NIS 3 billion this year, and next year, 2024, with the full launch of Carrefour branches in Israel, sales are expected to reach NIS 3.6 billion, compared to Rami Levy, which sells in the region of NIS 6.5 billion a year, and Shufersel, which sells NIS 14.7 billion. NIS.

So if we generalize these data into one line, then we are watching today the establishment of the third or fourth network in Israel that will give a good competition for the pocket of the Israeli citizen.

Tzvika Schwimmer, CEO of Electra Consumers told ice this morning: “There are more exclamation points than question marks in Karpur. There is no doubt that an international brand with renovated stores and thousands of products with differentiation and in a line at the level of variety and price bring competition and innovation to the market in Israel. The increase in sales of the renovated branches and the redemption rate per meter are proof that Carrefour is the right model for operating in the Israeli market.

“Electra needs to continue to grow in all areas, starting with air conditioning, production of heating equipment for the European market, and enjoys great demand in the electricity, sports and leisure sectors as well. At the end of the year, we will launch the credit card with Cal and Bit, which will create synergy across all brands.”

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• 5.

  Carrefour

  Abram
  

  03/2023/26

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  2

  If the chain had imported strictly kosher products, it would have sold three of its sales, even if the cost of kosher is expensive, try and see for yourself, free advice from a customer who really likes dear Nahum Beitan

  closed

• 4.

  Among other things, the Israeli consumer is willing to pay any price

  Yos
  

  03/2023/26

  1
  
  0

  First, the size of the Israeli market is relatively small. Second, the Israeli consumer is a captive of brands. In addition, regulation is unlikely. Also, a captive market in the hands of several families who operate a lobby in the Knesset that protects them from competition. But mainly the fault is the consumer who is willing to pay any price

  closed

• 3.

  Carrefour

  Benjamin
  

  03/2023/26

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  0

  Carrefour will be in the big cities. Not in insect-proof places like Kiryat Shmona Tsafet or Hazor! Doesn’t help us at all!

  closed

• 2.

  I just asked if the networks make little profit then why is it expensive in Israel

  Mickey
  

  03/2023/26

  1
  
  0

  Answer = thieves

  closed

• 1.

  A beautiful branch in Beit Shemesh. Why are there no prices on the shelves? (L.T.)

  Yehuda
  

  03/2023/26

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  0