King Store Supermarket Chain Eyes Stock Market Debut and Tel Aviv Expansion

The Arab-Israeli supermarket chain King Store is planning an initial public offering within two years, aiming to become the first Arab-Israeli company of its kind to be listed on the Tel Aviv Stock Exchange. The privately held company, estimated to have an annual turnover of NIS 1.1 billion, also intends to open its first major branch in Tel Aviv.

King Store, which currently operates 30 branches and an online store, is undergoing a national expansion and renewal initiative. This includes launching a new concept store, exemplified by its flagship branch in Rosh Ha'ayin, which was renovated for NIS 10 million and spans 6,500 square meters. The new concept aims to blend Israeli and Arab influences, East and West, and will be implemented in new branches opening over the next two years.

The chain, originating in the Galilee, differentiates itself by offering unique products, including lesser-known Arab brands, alongside standard supermarket fare. While 80% of its customers in non-Arab localities are Jewish, the stores feature items like traditional Arab cheeses and yogurt drinks. Most products are kosher, though the fresh meat is not considered kosher as stores are open on Saturdays, a day that accounts for 40% of the chain's revenue.

King Store was founded in 2010 and is owned by the Al-Mashadawi group (80%) and The Phoenix insurance company (20%). The company employs 1,500 people and is considering hiring foreign workers. Notably, the chain does not sell alcohol or cigarettes, citing ethical reasons and a desire to reduce smoking rates in the Arab community.

Previously, a planned branch in Ha'Atidim was canceled due to the October 7th events, and a potential location in Tel Aviv Port was also missed. The company is actively seeking a new site for its large Tel Aviv branch.