Israel's 'Basket of Israel' Initiative Ends After Six Months

The "Basket of Israel" pilot program, launched to combat the high cost of living by leveraging consumer purchasing power to lower prices, has concluded after only six months. Both the Israeli government and the sole participating retailer, Carrefour, have opted not to continue the initiative in its current format. The program officially ends on October 14, with no extension period to be implemented.

The Ministry of Economy stated that the pilot's objective was to test the use of collective consumer buying power as a tool to reduce prices and increase competition. While the ministry claims the initiative, which involved 112 products sold online and in 54 Carrefour stores, resulted in direct consumer savings of approximately NIS 40 million, with an indirect saving of tens of millions more due to increased competition, both parties decided against its continuation.

Initial data from the Ministry of Economy indicates that the state invested around NIS 25 million in the project. During the pilot, prices for comparable baskets in leading supermarket chains decreased by 8.4%, compared to a 3% drop in overall consumer goods. However, a significant gap of about 32.5% persisted between the "Basket of Israel" price at Carrefour and the average price at other surveyed chains.

Minister of Economy and Industry Nir Barkat decided not to exercise the option for a second operational period, leaving the decision on the initiative's future to the incoming government. This move aims to avoid obligating the next government to an extended period, allowing them to review the data and decide on a new course of action, whether to continue, expand, or develop an alternative model.

In parallel, Carrefour announced it is not continuing with "Basket of Israel." Instead, the retail chain plans to launch a new year-round promotion called "Carrefour Special Deal," featuring discounts across various categories in all its 144 branches and online. The data gathered during the pilot phase will now be passed to the next government for consideration.