Carrefour Abandons 'State Basket' Initiative, Returns to Promotions
Translated & summarized from i24NEWS by baba
Carrefour Israel has ended its "State Basket" initiative, a government-backed effort to lower grocery prices, and is returning to a promotion-based sales model. Rami Levy remains the cheapest supermarket chain, while Shufersal Deal is the most expensive. The move comes as Carrefour prepares for a stock market IPO, facing a critical consumer base and a competitive market.
The story in 6 lines · by baba
- Carrefour Israel has discontinued its "State Basket" initiative after six months.
- Rami Levy is currently the cheapest supermarket chain in Israel.
- Shufersal Deal is the most expensive supermarket chain in Israel.
- Carrefour's new strategy involves rotating "Special Deals" with purchase conditions.
- The "State Basket" was an initiative by Minister of Economy Nir Barkat to lower living costs.
- Carrefour is preparing for a stock market IPO following the initiative's discontinuation.
Carrefour Israel is discontinuing its "State Basket" initiative, launched by Minister of Economy Nir Barkat to combat the high cost of living by subsidizing 100 supermarket products. The program, which reportedly cost 25 million shekels in its first six months, received criticism and is now being replaced by Carrefour's "Special Deal" strategy, featuring promotions with numerous conditions and fine print.
This shift mirrors a strategy previously adopted by Shufersal, involving ten rotating deals with a minimum purchase of 100 shekels. However, this approach has not yielded positive financial results for Shufersal, with reports of declining same-store sales.
Following Carrefour's departure from the "State Basket," Rami Levy remains the cheapest supermarket chain in Israel, with a basket of goods costing 2,411 shekels. Other chains ranked by basket cost include Osher Ad (2,458 shekels), Yohananof (2,519 shekels), Hyper Carrefour (2,572 shekels), Victory (2,693 shekels), and Shufersal Deal as the most expensive (2,782 shekels). It is noted that Carrefour Market and City branches have significantly higher prices, and these constitute the majority of the chain's stores.
In the produce category, Carrefour's fruit and vegetable basket is the second most expensive at 193 shekels, surpassed only by Shufersal Deal's 154 shekels, while Rami Levy's basket costs 154 shekels. The new CEO of Carrefour Israel faces a dynamic market and a critical consumer base, especially as the company prepares for a stock market IPO, where public trust will be crucial.
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