City Market Sells 11 Branches for $9.5 Million, Invests in New Stores

Supermarket chain City Market announced it is selling 11 of its branches to the retail chain "100 and Beyond" for approximately 35 million shekels (about $9.5 million). The deal is contingent on approval from the Competition Commissioner and meeting other required conditions for completion.

The branches slated for sale are located in Yavne, Ramla, Kfar Saba, Be'er Sheva, Kiryat Ono, Rehovot, Hadera, Or Yehuda, Tel Aviv-Yafo, and Gedera. Following the transaction, these stores will operate under "100 and Beyond," a new chain established in early 2026 and led by Daniel Veridiger. The sale price averages about 3.2 million shekels per branch. City Market did not disclose the breakdown of the sale price per branch, nor did it provide sales or profitability data for these locations or full financial terms, including whether the price includes additional assets or rights beyond the store operations.

Despite the sale, City Market is not halting its expansion. Concurrently with the transfer of the 11 branches, the chain is opening six new stores in Tel Aviv-Yafo, Rishon LeZion, Netivot, Holon, Yavne, and Petah Tikva, with a total investment of approximately 20 million shekels, averaging about 3.3 million shekels per new store. This strategic move indicates a reconfiguration of the chain's footprint rather than an exit from certain areas or a cessation of investments.

City Market is receiving about 35 million shekels from the sale of active locations while investing a lesser amount of around 15 million shekels in establishing six new stores. Without sales and profitability figures for both the sold and newly opened branches, the precise impact of this maneuver on the company's overall financial results remains unclear. Over the past year, City Market opened eight branches and plans to open about 15 more in 2027, though the investment scope for next year has not been disclosed.

This development occurs amid continued investment in expansion, customer loyalty programs, and acquisitions by food retail chains in Israel. Competitors like Tiv Ta'am and Victory are also actively operating and expanding within a highly competitive market. For "100 and Beyond," acquiring 11 established branches simultaneously significantly accelerates its market presence compared to a gradual organic growth strategy.

Yossi Schwartz, founder and CEO of City Market, stated that the chain continues to develop alongside this transaction, highlighting the simultaneous opening of six new branches and plans for further expansion. The sale's completion is subject to regulatory review by the Competition Commissioner, as City Market is classified as a large retailer under the Food Law.