Eitan Yohananof Plans to Separate Real Estate from Retail Operations at Yohananof
Eitan Yohananof, CEO and controlling shareholder of the Yohananof supermarket chain, is preparing to separate the company's real estate activities from its retail operations, with a potential public offering in the future. Yohananof explained that while the retail business demands immediate positive cash flow, real estate investments are long-term, making separation necessary to allow each sector to receive proper professional management. The retail chain currently has 27 signed contracts for new branches and aims to reach 80 stores.
Regarding a possible IPO, Yohananof said it would only be pursued if needed for financing, noting that the company is organized and transparent enough to use this tool quickly if required. He also addressed a pending antitrust indictment filed by the Israeli Competition Authority against him, a competitor, and his company's commercial VP for alleged price-fixing. Yohananof denied any wrongdoing, emphasizing the company's commitment to consumer benefit and competition.
Yohananof discussed the supermarket's recent ventures, including selling cars, which he described as a "gimmick" rather than a fundamental change in retail. He stressed the importance of offering regular shelf products at good prices rather than one-off promotions. On e-commerce challenges, he highlighted high delivery costs and said the company is developing a large logistics center in Or Yehuda to improve efficiency.
He commented on industry trends such as direct meat imports by competitors and the need to reduce supply chain costs, acknowledging the complexity of such moves. Yohananof also called for reforms in kosher certification and government measures to reduce the cost of living, including lowering VAT on basic goods and property taxes for supermarkets.
Regarding labor, Yohananof noted that about 10% of his workforce consists of Thai foreign workers, filling gaps in cleaning and cashier roles due to local labor shortages and generational shifts. He also mentioned his 51% stake in the drone company Down Wind, which is developing military-related technology, and his recent acquisition of land in Yavne for a data center farm, a new venture separate from the retail business to avoid burdening the public company with unrelated investments.
