King Store Arab Retail Chain Plans Tel Aviv Stock Exchange Listing

The Arab-Israeli retail chain King Store, owned by brothers Mohammed and Bilal Al-Mashhadawi, is preparing to expand its operations into the general Israeli market with the ultimate goal of listing on the Tel Aviv Stock Exchange. The company, which began in 2008, has seen significant growth, now operating approximately 30 branches, each averaging 2,500 square meters, with some reaching 6,000 square meters. King Store employs around 1,500 people and reports annual sales of approximately 1.1 billion shekels, with a gross profit margin of about 23 percent, comparable to major Israeli retail chains.

The chain's expansion strategy includes opening branches in areas with predominantly Jewish populations, and a central branch is planned for Tel Aviv. King Store's growth accelerated through the acquisition of 16 branches from other struggling chains, including Shufersal, Mega, and Younet Biton. The company's success is attributed to its deep understanding of the Arab consumer market, enabling it to significantly increase sales in previously underperforming stores.

According to accountant Majd Karam, who spoke on Radio Al-Shams, King Store is currently focused on broadening its presence beyond the Arab community to attract investment from financial institutions. Listing on the stock exchange would allow the public to buy shares, making investors participants in the company's profits and losses. Karam noted that the company is still preparing for the listing and has not yet finalized the prospectus, emphasizing that broader market penetration is a prerequisite for attracting institutional investors who might be hesitant to invest in a company solely focused on one community.

King Store aims to compete in the broader Israeli retail market by offering a wide range of products beyond groceries, including electrical goods and other merchandise. The company had previously considered a stock exchange listing about a decade ago but is now pursuing it following substantial growth and increased sales volume. The retail sector in Israel is highly concentrated, and King Store's diversified product strategy is intended to expand its customer base and competitive edge.