Carrefour to Decide on "Basket of Israel" Project After Holidays

Carrefour Israel is expected to decide after the upcoming autumn holidays whether to continue its participation in the government's "Basket of Israel" program. This initiative offers approximately 100 products at a discounted price of around 30%. The decision will be one of the first major tasks for the chain's new CEO, Inbal Harson, according to the business newspaper "Calcalist".

The "Basket of Israel" project commenced in the spring of 2023. Under its terms, Carrefour committed to selling a set basket of goods at fixed, reduced prices in about 50 stores and online for an initial six-month period. In exchange, the Ministry of Economy allocated approximately 25 million shekels for the project's advertising campaign. The program includes an option for a six-month extension, with an additional 25 million shekels available for advertising.

Carrefour's management had anticipated that the discounted basket would boost annual turnover by roughly 300 million shekels. However, the sharp price reductions have simultaneously decreased store revenues. Conversely, discontinuing the project would lead to price increases on about 100 items and could deter customers.

Carrefour's sales in Israel declined by 1.5% to 3.28 billion shekels in 2025. In the fourth quarter of that year, sales at comparable stores dropped by 9.3%. While sales in the first quarter of 2026 saw a 2.4% increase, this was influenced by the Passover holiday and increased food consumption during the conflict with Iran.

Previous research on the "Basket of Israel" indicated that while the program led to some price reductions among competing discount retailers, its overall impact on the cost of the grocery basket was limited.