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Now it's official: the retail giant "Spar" is on its way to Israel Israel today

2023-03-05T11:06:03.702Z


Shufersal and Amit Zeev signed the deal, and the Dutch chain will open branches in Israel • The company's goal is to establish 10 branches within 5 years • Economy Minister Nir Barkat: "It will increase competition and reduce the shopping basket for Israeli citizens"


Shufersal announced today (Sunday) that together with Amit Ze'ev signed the agreement to launch the "SPAR" chain in Israel 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 venture 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 for the exclusive import and marketing of "Spar" products in Israel, which offer 10,000 products marketed in 48 countries around the world.

The joint company will work, among other things, to open "Spar" stores in Israel and will also supply Shufersal with its products.

The goal of the Dutch company is to establish 10 branches in the first phase.

These are 10 new branches, so they will be established gradually and within five years.

Shufersel, photo: Yossi Zeliger

This means that there will be another choice for Shufersal's private label and not in its place.

In the beginning, a focus on the basic consumption baskets will apply.

The intention is to give a choice to a more discounted product that is not the controlled brand.

These products will be cheaper than the leading product in the category.

As mentioned Shufersal is not giving up its private brand because it has an important value for it and is a growth engine.

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 logistic services.

The agreement regulates the relations of the parties in the joint company, who will be able to compete with each other.

Shufersal will provide the joint company, in several milestones, a total of NIS 28 million, which is partly as an investment and partly as an owner loan. The agreement is subject to the approval of the Competition Authority.

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.

"What is good for Europe is good for Israel"

Economy and Industry Minister Nir Barkat said of the move: "I welcome the entry of the international retail giant Sapar into Israel."

The Ministry of Economy and Industry, under my leadership, has as a strategic goal the introduction of foreign giant chains into Israel - a move that will increase competition and reduce the shopping basket for Israeli citizens.

Last week, I met with Shufersal Chairman Itzik Abarkhan, who, together with Amit Ze'ev, is behind bringing in the additional network and I congratulated him on the move. We will help and support entrepreneurs and international entities that come to Israel and increase competition.

"'Spar' joins Carrefour, which has already started operations in Israel. Two huge international chains that can change the situation in the centralized retail market.

I instructed the professionals in the Ministry of Economy to hold contacts with other networks interested in entering Israel.

The concept I promote is that what is good for Europe is good for Israel.

More chains will soon enter to open up the market, increase competition and lower prices.'

Nir Barkat, photo: Noam Rivkin Fenton

Uri Vetterman, 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 goods market"

Amit Ze'ev said: "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."

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Source: israelhayom

All news articles on 2023-03-05

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