SPAR/ShutterStock supermarket, Sergiy Palamarchuk
Until a few months ago, it seemed to be part of a "branded spring" in the retail field: long lines lined up at Seven Eleven stores, Carrefour aroused enormous interest and even brought the prime minister and economy minister to open its first supermarket, and Shufersal, the largest and most powerful retailer in Israel, announced that it intends to partner with Amit Ze'ev, who owns the license to operate SPAR supermarkets in Israel.
However, now the Shufersal Group announces that it has decided not to complete the deal with Amit Ze'ev, to launch SPAR activity by establishing a joint company. The Company informs that against the background of the limitations set by the Competition Authority for the purpose of granting its approval for the engagement, and after further examination of the data received by the Company in the period following the signing of the agreement, it has decided not to continue working to fulfill the agreement, which will end on September 30, 9.
Regulatory restrictions are one thing, but the term "further examination of the data" warrants a reexamination, hints of which can also be found in the words of the group's CEO, Uri Veterman, which may reflect a change in the retail trend of recent years: after record profits during and after the pandemic, it seemed that many factors were flocking to the profitable market. However, market conditions have changed, and in light of the slowdown in the economy, which is also reflected in a decline in private consumption, the field has become less strategic for new brands and players.
Under the original agreement signed in March 2023, the joint company was supposed to be held 2023.19% by Shufersal and 9.80% by Amit Zeev and receive the franchise to operate stores under the SPAR brand, as well as for the exclusive import and marketing of SPAR products in Israel.
Uri Veterman, CEO of Shufersal Group and Amit Ze'ev, SPAR franchise owner in Israel, in more optimistic days / PR
Uri Veterman, CEO of Shufersal Group: "The deal to launch a SPAR network in Israel is intended to increase competition by importing discounted products for the benefit of the Israeli consumer. In accordance with changing market conditions and regulatory requirements, and in accordance with the estimates we made during the period from the signing of the agreement until the recent receipt of conditional approval from the Competition Authority, the Company decided not to complete the transaction.
Shufersal sees the private label as a strategic asset and a quality consumer alternative in response to the cost of living in Israel, and will continue to expand its product portfolio in a variety of categories and support local industry and small and medium-sized suppliers."
- More on the subject:
- Shufersal
- Uri Veterman
- Retail
