Shufersal Market Share Declines as Tiv Taam Sees Phenomenal Growth

Israeli retail chains have concluded their second quarter 2026 reporting season, revealing a mixed financial landscape. The combined revenue for six publicly traded chains, including Shufersal, Yohananof, Rami Levy, Victory, Tiv Taam, and Carrefour, reached 18 billion shekels in the first half of the year, marking a 3.7% increase year-over-year. Shufersal, however, stands as a notable exception, experiencing a nearly 2% revenue drop to approximately 7 billion shekels. The chain, controlled by brothers Yossi and Shlomi Amir, reported a sharp decline in comparable sales and profits.

Shufersal's market share continues to shrink. In 2023, prior to the Amir brothers' acquisition, it held 50% of the turnover among five public chains. In the past half-year, this figure fell to 44%, and when including Carrefour, it stands at 40%. The company attributes its performance decline to ongoing store renovations, including the conversion of some locations into the "Universe" discount format, reduced operating hours, and the closure of unprofitable branches.

Excluding Shufersal, the other five chains collectively saw a 7% revenue increase in the first half of the year, with their total operating profit surging by 17%. Tiv Taam emerged as the fastest-growing chain, increasing its revenue by 12% to 1.1 billion shekels, despite having the smallest turnover among the public retailers. The company's gross margin improved from 33.7% to 34.9%, and its operating margin rose from 6% to 7%, driven by the integration of the "Mizrah u-Ma'arav" Asian products chain.

Among the other chains, Victory recorded the most significant rise in comparable sales at 8.3%, though this growth was solely due to supplies to the Gaza Strip; without these sales, its comparable sales decreased by 0.7%. Victory's operating margin remains the lowest in the industry at 4.3%. Yohananof reported the highest operating margin for the half-year at 7.3%, also expanding its sales and store count to 47. Rami Levy improved its operating margin to 5%, and Carrefour's was 5.1%.