Israel's 'Basket' Initiative Fails to Lower Prices, Some Retailers See Increases
Translated & summarized from Ice by baba
Israel's "Basket of Israel" initiative, designed to lower supermarket prices, has concluded with some chains, including Carrefour, experiencing price increases of up to 4% on featured products. The investigation by "HaTzinor" found significant price hikes at Carrefour and Shufersal's "Universe" brand, contradicting the program's goals. While Carrefour and the Ministry of Economy dispute the findings, claiming savings for consumers, the initiative's impact on overall price reduction remains contested.
The story in 5 lines · by baba
- Carrefour Hyper and Market saw price increases of approximately 4% on "Basket of Israel" products.
- Shufersal's "Universe" brand led price hikes with a 9.11% increase on featured items.
- The "Basket of Israel" initiative aimed to lower prices but some chains saw increases.
- Carrefour disputes the findings, claiming its products are among the cheapest.
- The Ministry of Economy claims the initiative saved consumers at least 40 million shekels.
A consumer initiative aimed at lowering prices in Israeli supermarkets has apparently backfired, with some participating chains, notably Carrefour, experiencing price increases of around 4% on products included in the "Basket of Israel" program. The "Basket of Israel" initiative, which concluded after six months, was intended to foster competition among supermarket chains and drive down costs for consumers. However, a recent investigation by the program "HaTzinor" revealed that Carrefour Hyper saw a 4.18% price hike, and Carrefour Market experienced a 4.07% increase on these specific items.
Carrefour, which entered the Israeli market with significant promises of being a major international retailer offering competitive prices, was already ranked as the second most expensive chain before the "Basket" initiative began. Following the initiative, it remains in second place, behind Shufersal's "Universe" brand. The investigation, which used data from Pricez, also found that "Universe" by Shufersal saw the largest price increase at 9.11%, followed by Rami Levy at 5.24%.
These price hikes occurred while the general consumer price index rose by approximately 1.3%. The "Basket of Israel" program, spearheaded by Minister of Economy Nir Barkat, was designed to specifically impact the prices of the most popular products. The investigation suggests that in some chains, these prices moved in the opposite direction of the initiative's goals.
Carrefour disputes these findings, stating that their own checks show Hyper Carrefour as one of the three cheapest "baskets" in the country. The Ministry of Economy and Industry also presented different figures, claiming the initiative led to direct consumer savings of at least 40 million shekels. According to the ministry, equivalent "baskets" in leading chains decreased by 8.4% during the pilot period, compared to a 3% decrease in all consumer goods across the economy.
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