Carrefour Ends "Israel Basket" Initiative, Prices to Rise

Carrefour will not extend its participation in the "Israel Basket" initiative, a government-backed program aimed at lowering food prices. The Ministry of Economy announced the completion of the first phase of the initiative, and according to the business newspaper Calcalist, Carrefour, the sole participant, has decided against continuing. Consequently, prices for the approximately 100 products included in the "basket" are expected to revert to their previous levels within the coming weeks.

The "Israel Basket" offered these 100 items at prices roughly 30% lower than typical discount chains, in exchange for state-funded advertising. With Carrefour's withdrawal from extending the program, consumers will see these discounts disappear. The initiative, launched by the Ministry of Economy about five months ago, sought to curb food prices and boost competition among retail chains.

Calcalist reported that Carrefour's own store sales declined in the second quarter compared to the previous year, while competitors like Yohananof and Rami Levy experienced less severe sales drops. Carrefour stated it would compensate for the initiative's end by introducing new promotions in its stores.

This development reignites debate regarding the effectiveness of government intervention in food pricing and whether limited-time discounts on select products can foster sustainable retail competition or merely provide temporary relief.