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

Carrefour Israel is concluding its "Israel's Basket" initiative, a program designed to offer consumers a selection of products at lower prices. The program, which ran for six months, will not be extended for another term, according to the supermarket chain. Instead, Carrefour is launching a new nationwide discount campaign called "Carrefour Special Deal," featuring discounts of 30% or more on various leading products.

The "Israel's Basket" initiative was launched by Minister of Economy Nir Barkat as an effort to encourage competition among food chains and reduce grocery costs. The Ministry of Economy had issued a tender for 100 products, inviting food chains to offer the lowest prices, with the winning chain set to receive NIS 50,000 annually in advertising funding. Carrefour was the sole bidder and thus implemented the program for the past half-year.

The decision to end the initiative comes amid internal changes at Carrefour, including the departure of CEO Michael Luboschitz, who moved to an advisory role, and the appointment of Inbal Harson as his successor. The new management is reportedly pursuing a different business direction, partly with the aim of preparing the company for an IPO.

While the products in "Israel's Basket" were indeed priced lower, comparisons of larger shopping baskets that included additional items did not consistently show Carrefour as the cheapest option. Furthermore, the advertising surrounding the claim of the lowest prices faced legal disputes, with allegations that the comparisons did not justify presenting the basket as the cheapest in Israel.

Consumers are advised to compare actual prices across different chains rather than relying solely on a predefined basket. The new "Carrefour Special Deal" will offer discounts on a range of products across all its branches and online, with updates twice a month. It remains to be seen whether these new promotions will lead to overall savings for shoppers.