Israel’s Low-Cost Basket Claims Big Sales and Market Impact

Economy Minister Nir Barkat presented new figures on Tuesday for “Israel’s Low-Cost Basket,” a pricing program launched about two months ago with Carrefour. According to the Economy Ministry, the initiative has changed shopping habits and intensified competition in Israel’s food market, with price cuts already visible at rival chains.

The program includes about 100 basic consumer products sold at reduced prices in 54 Carrefour Market branches and on the chain’s online store. The ministry said about 800,000 Israelis have already bought items from the basket, more than 100,000 new customers have joined Carrefour, and the chain’s share in the discounted basket category has jumped from 2.2% to 7.2%.

Officials also said the average food basket across the market fell from 1,707 shekels to 1,623 shekels, a drop of 4.75%, which they attribute to stronger competition and rival promotions. Carrefour’s online sales have risen about 50% since the launch. The ministry highlighted sharp increases in sales of specific items, including whole wheat spaghetti, green pitted olives, hummus, frozen chips, basmati rice, Mamma Oof chicken products, and sugar-free corn, with gains ranging from 906% to 1,552%.

The ministry also listed price declines elsewhere in the market, including 14.9% for Crunchy Tapuchips, 13.8% for Gad Tzfatit cheese, 9.4% for Pinuk shampoo, and 8.1% for Gad baby mozzarella. Barkat said, “the public votes with its cart,” adding that Israelis “proved they are not suckers” and that competitors were forced to lower prices. He accused monopolies and wealthy interests of using Channel 12 to undermine the plan, and urged shoppers to keep buying online or in the 54 stores. He also said he plans to advance legislation banning cross-ownership between major real-sector or financial groups and news media, to reduce conflicts of interest and strengthen public trust.