Israel’s Discount Basket Barely Moved Prices, but Carrefour Gained Big

About two months after Israel’s Economy Ministry launched the “Israel’s discounted basket” program with Carrefour, a check of basket items across major chains found that most products did not become cheaper. Still, the average cost of the full basket across the market fell by 88 shekels, from 1,707 shekels to 1,623 shekels, a 4.75% drop. The report says that modest decline may suggest some impact on grocery prices in a market where prices usually keep rising.

Carrefour appears to be the main winner. The chain says the partnership helped it add about 150,000 customers, bringing its total to roughly 800,000, and boosted online sales by 50%, even though some items were missing online and in stores. The discounted basket is sold in only 52 Carrefour branches, mostly hypermarkets and regular markets, as well as on Carrefour Online. Carrefour City and City La Marge stores are much pricier. Its share of basket-item sales tripled, from 2.2% to 7.2%.

Some product spikes were dramatic. Carrefour now holds more than 50% of total market sales of Veiler tofu, and about 41% of whole-wheat Barilla pasta sales in the last week. Sales of whole-wheat spaghetti jumped 1,552%, Beit Hashita sliced olives 1,514%, Tzabar hummus 500 grams 1,487%, Tapugan chips 1,279%, basmati rice 1,159%, Mamma Oof 1,147%, and canned corn without sugar 906%.

The article says other chains have only partly responded. Some discounted a few basket items, but many are still more expensive than Carrefour. Examples include Tiv Taam’s basket at 1,750 shekels, Shufersal Deal at 1,694, and Rami Levy at 1,451, all above Carrefour. Specific items that fell nationwide include Crunch 50g, Gal Chazut cheese, Pinuk shampoo, Baby mozzarella, Primor orange juice, frozen cauliflower, Daniele dessert, olive oil, canned peas and carrots, and several more. Some items, however, did not get cheaper at all, including Persil gel detergent, frozen broccoli, Taster’s Choice, and Pillows cereal. Economy Minister Nir Barkat said he is receiving requests to expand the initiative, including a possible “healthy basket” from the Health Ministry, and called it a pilot he would recommend the state continue.