Shufersal and Amit Ze’ev signed an agreement to launch the SPAR chain in Israel. According to the agreement, a joint company will be established that will be held by Shufersal at a rate of 19.9% and Amit Ze’ev at a rate of 80.1%. A franchise will be granted to operate stores under the SPAR brand, as well as for the exclusive import and marketing of SPAR products in Israel. The joint company will work to open SPAR stores in Israel, and will also supply Shufersal with SPAR products that will be sold in the Shufersal network
Shufersal continues to expand and announces today that after signing the memorandum of understanding last December, Shufersal and Amit Ze’ev signed the agreement to launch the SPAR Israel chain through a joint company, which will be held by Shufersal at a rate of 19.9% and by Amit Ze’ev at a rate of 80.1%.
As part of the agreement, the joint company with Amit Zeev, who will serve as the company’s CEO, will be granted a franchise to operate stores under the SPAR brand as well as to import and exclusively market SPAR products in Israel, which offer over 10,000 products marketed in 48 countries around the world. The joint company will operate, among other things , to open SPAR stores in Israel, and will also provide Shufersal with SPAR products that will be sold in the Shufersal network. Shufersal will have the right to purchase from the joint company the products bearing the SPAR brand, while the joint company will be entitled to purchase products from the company as well as logistics services. The agreement regulates the relations of the parties in the joint company, which will be able to compete with each other. Shufersal will provide the joint company, in a number of milestones, a total of 28 million NIS, which was partly as an investment and partly as an owner’s loan. The agreement is subject to approval by the Competition Authority.
Uri Waterman, CEO of Shufersal Group: “The agreement we signed constitutes another pillar of Shufersal’s activity to lower the cost of living in Israel, by introducing a wide variety of products of international standards and at fair prices, in order to increase competition in the food and consumer products market.” Amit Zeev: “The signing of The agreement is a significant milestone in the arrival of the SPAR chain in Israel, which will bring with it international standards, freshness, innovation and an abundance of products in a wide variety of segments, which will enable competition for the hearts and pockets of the Israeli consumer.”
SPAR is an international retail chain originating in the Netherlands that operates in 48 countries around the world. The launch of the network in Israel will be established under a joint venture with Shufersal, Amit Ze’ev and other partners who are to join. The franchise agreement will allow the joint company to open branches in Israel, import thousands of products from around the world of the SPAR private brand and market them in SPAR stores and the Shufersal chain. The chain operates in a model of local partners, in 13,623 stores worldwide serving 14.5 million customers daily, with an annual sales turnover in 2021 of approximately 41.2 billion euros. Its annual growth rate stands at an average of about 5.1% and according to the forecasts of the global SPAR, the chain is expected to reach a sales turnover of 50 billion euros in 2025.