Shufersal is preparing to compete with Carrefour through the establishment of a new international network.
Shufersell will join as a shareholder a corporation controlled by Amit Zeev, which will enter into a license agreement with SPAR, which will include, among other things, the right to establish its own stores in Israel as well as the right to import and market products under the SPAR private label.
According to the memorandum of understanding, it is an investment of tens of millions of shekels, and the intention is to open at least 10 branches in Israel in the next three years, in which SPAR products will be sold exclusively in Shoppersal stores in the various formats in addition to selling them in the new independent chain.
The meaning of the memorandum of understanding is that the group intends to establish a joint company with Amit Zeev, who represents the international SPAR chain based in the Netherlands, and will serve as the company's CEO.
Shufersel branch.
A jump in the chain's profits //Photo: Yehoshua Yosef // Shufersel branch.
A surge in network profits,
Zeev previously served as CEO of Beitan Wines. In the first phase, the intention is to open 10 branches of the chain. However, the more significant focus is to expand the private brand through SPAR's private label products, for which Shufersal receives exclusivity. Thus, there will be more private label products in the range Wide range of products, and a greater possibility to reduce dependence on large suppliers.
Many more products
The intention is not to replace Shufersal's brand, but to continue to develop Shufersal's private brand and offer a wider range of products, which includes another brand.
Thanks to the supply of an existing private brand, the ability is to bring in additional existing products, which have already been approved instead of just developing products - which involves considerable costs, a long development time of about a year and products that sometimes fail.
As mentioned, the goal is to reduce the dependence on the big suppliers, especially in light of the recent price increase war.
Shufersal will have the ability to bring 10,000 products to its branches.
The chain will not import all of them, but it will allow for a larger selection.
"We will bring real change"
SPAR is an international retail chain originating in the Netherlands, operating in 48 countries around the world.
The launch of the chain in Israel will be established under a franchise agreement, and the memorandum of understanding will allow Shuferresal to open branches in Israel and purchase thousands of products of the private brand SPAR.
Uri Waterman, CEO of Shufersal Group: "Global SPAR products will be marketed at fair prices and significantly lower than usual in Israel, thus contributing to lowering the cost of living in Israel."
Amit Zeev said: "I am confident that together we will be able to bring about a real change - to give the customer a new shopping experience that includes the quality of products and service that we all know from Europe, alongside prices that surprise every Israeli when he visits a supermarket across the continent."
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