An overview of the industry conducted by Dun & Bradstreet shows: a 30% increase in sales this year • The reason: the chains were defined as vital and expanded the range of products
The activity of the stock chains as an essential industry during the closures has angered many businesses due to the fact that these chains also sold non-essential products.
A survey by business information company Dun & Bradstreet on the stock industry reveals the industry's boom against the backdrop of the corona crisis.
Dun & Bradstreet estimates the aggregate revenue of the stock stores industry is estimated at NIS 2.6 billion in 2020, an increase of about 30% -25% compared to the industry revenues in 2019. Of this, the aggregate revenue of the large stock chains is estimated at NIS 1.7 billion.
The issue of defining these businesses as vital businesses is being discussed and examined these days, under the third closure, but for now most of the stock stores have remained open.
Unlike many other commercial businesses that remained closed during and after the second closure, the vast majority of stores in the industry are located on the street and not in malls, while adjusting the product mix in the spirit of the period such as marketing protection and hygiene products in chain stores and even supply to the institutional market during crises such as government offices, hospitals and more.
There are 3 large chains in the industry: "MAX", "The Stock" and "Cheap Stock", which together operate about 130 stores nationwide.
In total, including the small chains and independent stores, there are about 250 stores in the industry.
The Max Stock chain was founded in 2004 and is considered the leading chain in the industry.
The chain has 49 branches nationwide.
The company's financial statements for the first nine months of 2020 show that the company recorded revenues of NIS 734 million during this period, compared with revenues of NIS 562 million in the corresponding period last year.
This is an increase of about 30% in revenues and a net profit of NIS 64 million, compared with a net profit of about NIS 55 million in the corresponding period last year.
In 2019, the entire revenue turnover amounted to approximately NIS 741 million, along with a net profit of approximately NIS 70 million.
In line with market growth, the local retail giant, FOX Group, announced during September 2020 an expected entry into the stock market, after signing a deal with the Greek stock chain JUMBO.
As part of the expected competition with the JUMBO chain and in order to increase the mix of products sold in the chain for the third closure period, during the month of December 2020, the Max Stock chain first began marketing white home appliances at attractive prices, including office mini refrigerators, tumble dryers and more. Of electrical appliances sold in chain stores in the near future.
According to Efrat Segev, VP of Data and Analysis at Dun & Bradstreet, "The stock industry has been booming recently.
"Although they were open as essential businesses, they sold a lot of other products such as clothing and toys, products of industries and stores that could not operate."