Electra is preparing to change the rules of the game in the food retail market. The company controlled by brothers Danny and Mikey Zalkind has signed a memorandum of understanding with the international retail brand Carrefour to open a chain of supermarkets in Israel. Carrefour’s first branches will open by the end of the year and within 3 years more than 150 Pavilion and Mega branches will be converted to the French brand under which the largest supermarket chain in Europe operates, and the second largest in the world in terms of revenue after Wal-Mart. Thus, the Pavilion and Mega wine brands will be deleted and the first branches under the Carrefour brand will open before the end of 2022 and the branded Carrefour products will begin to be sold in Pavilion wine branches before the summer.
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This is a break-even step in terms of industry competition, as the agreement has dramatic implications from an economic point of view, since the company can use the power of the international network to purchase from its suppliers, at low prices and can launch a private label in Israel, under the existing brand and the company’s products abroad.
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Carrefour branch in France
(François GOGLINS, Wikipedia)
Carrefour is the largest international retailer to date in Israel, with about 13,900 branches and a sales turnover of 81.2 billion euros. Carrefour’s brands are the largest in Europe. Carrefour carries out more than 2 billion transactions a year and the company’s sales turnover for 2021 amounted to 81.2 billion euros.
Carrefour is a public company whose shares are listed on the Euronext NV stock exchange and the company’s market value is about 14 billion euros.
The franchise agreement between the parties is for a period of 20 years, with the possibility of extension for another 20 years. The franchise fee will include an initial payment, plus payments to be paid as a percentage of the income. The parties will work to sign a binding agreement by April 2022.
Patrick Laspargos, president of Carrefour’s International Division, said: “Carrefour’s arrival in Israel will significantly help improve the local shopping experience and strengthen the purchasing power of the consumer who will receive better products, at more affordable prices.”
Electra Consumer Products CEO Zvika Schweimer said: “The entry of Carrefour into Israel is the largest and most significant move in the history of retail in Israel ever. Being Karpor’s leading global marketing chain and one of the largest food and consumer producers in the world, will allow Electra Consumer Products to lead the food and consumption market in Israel and enter new areas. “Bitan Wines CEO Amit Zeev said: “An advantage over the competition. We intend to bring a line and change that will be felt in every home and house and offer solutions to the cost of living for the consumer audience in Israel.”
Carrefour was founded in 1960 in France and is the leading marketing chain in Europe and one of the largest chains in the world.
It has over 13,900 branches worldwide in 47 countries. It operates directly across Europe and also, operates as part of partnerships in other countries in the Middle East, North Africa, East Asia and Africa. In the past year alone, more than 200 Carrefour stores have opened around the world.
The company operates in various retail formats: hypermarkets, supermarkets, Cash & Carry, municipal stores, and online sales sites, tailored to each country and state. The company operates stores in various sizes from 80 square meters to 20,000 square meters.
In addition, Carrefour is one of the largest food and consumer producers in the world. The company manufactures 14,000 food and non-food products in hundreds of factories around the world, under 20 brands it owns. Carrefour produces pasta, chocolates, snacks, cheeses, delicacies, ketchup, sauces, preserves, fresh food, wine, beer, cleaning products, hygiene products, detergents, organic food and more.
The company has a specialization in French gastronomy and offers a wide and unique range of products in the field of wines, cheeses, pastries and desserts.
In addition to food and consumption, Carrefour is active in a wide range of areas, including: toys, costumes, lingerie, fashion, sports, housewares and household products, furniture, tools, office equipment and more. Every year the company launches 8 rotating collections in these areas. The products are sold both in the chain’s branches and online.