Carrefour Ends 'Basket of Israel' Initiative, Prices to Change

The "Basket of Israel" initiative, a government-backed program aimed at lowering consumer prices, will conclude on October 14th, after running for approximately six months. The Ministry of Economy announced that the current government will not extend the program, leaving the decision for its continuation, expansion, or replacement to the next government. However, reports indicate that Carrefour, the sole participant in the initiative, chose not to accept an additional NIS 25 million in government funding, effectively ending its involvement in the program as is.

This means that the discounted prices offered under the "Basket of Israel" will cease to be valid after October 14th. While Carrefour's website currently shows these prices as valid until that date, with some products limited to two purchases, the chain plans to continue offering discounts independently. Carrefour is reportedly preparing to launch a new nationwide campaign called "Carrefour Special Deal," which will feature discounts on various products across its stores, separate from the government initiative. It remains uncertain if these new discounts will match the exact prices of the 112 products previously included in the "Basket of Israel."

The "Basket of Israel" pilot program began in April, featuring 112 products sold online and in 54 Carrefour branches. The Ministry of Economy claims the program resulted in an average price difference of 32.5% compared to other surveyed supermarket chains. Initial data suggests consumers saved approximately NIS 40 million, with a government investment of NIS 25 million. The ministry also points to an indirect saving of tens of millions more due to increased competition, citing an 8.4% drop in comparable baskets at leading chains during the pilot, versus a 3% drop in overall consumer goods.

However, the initiative's overall impact is debated. One study found that while "Basket of Israel" products became cheaper, prices in other categories at Carrefour increased. Researchers suggested the program's effect on the overall cost of living was limited, and the fact that only Carrefour participated was a point of discussion. The Ministry of Economy acknowledged the difficulty in fostering sustained price competition among retailers, manufacturers, importers, and suppliers. Carrefour was selected through a tender process, with an option for a six-month extension.

As the pilot concludes, the Ministry of Economy will compile a final report detailing sales data, household benefits, cumulative savings, price trends, and program costs. This report will inform the next government's decision on the future of such initiatives. For consumers, the key date remains October 14th, after which Carrefour's discounts will transition to its own independent "Special Deal" format.