Zara Closes Stores Amid Price Discrepancies, Lego Opens to Huge Crowds
Translated & summarized from Ynet by baba
Fashion retailer Zara is closing stores in Israel and increasing shipping fees, drawing attention to significant price differences compared to Europe. Meanwhile, the opening of a new Lego store in Petah Tikva attracted huge crowds, prompting competitor KSP to offer discounts. The Director of the Tax Authority is again proposing to cancel the 200 shekel banknote to fight tax evasion. Kibbutz Kfar Giladi secured a tender for a quarry operation for 542 million shekels, and a case of a bank freezing an elderly woman's account due to financial activity was resolved.
The story in 5 lines · by baba
- Zara is closing Israeli stores and increasing shipping costs due to price disparities with Europe.
- A new Lego store opening in Petah Tikva saw massive crowds, with KSP offering discounts.
- Israel's Tax Authority director proposes canceling the 200 shekel banknote to combat tax evasion.
- Kibbutz Kfar Giladi won a tender for a quarry operation for 542 million shekels.
- A bank froze an elderly woman's account due to suspicious financial activity, later resolved.
Fashion retailer Zara is closing stores in Israel and canceling free shipping, a move that highlights significant price differences between the Israeli market and Europe. Zara is shutting its store in Azrieli Beer Sheva and plans to close Zara Home in Kanyon Ayalon, leaving only three Zara Home branches in Israel. Concurrently, Zara's Israeli franchisee, Gottex Fashion, has ended free shipping for purchases over 199 shekels across Inditex group brands, with standard shipping now costing 14.90 shekels. A comparison revealed that a basket of three items costing 423.70 shekels in Israel was priced at 262.9 shekels from Greece, including shipping, a 37% saving.
In contrast, the opening of Lego's 11th store in Israel, located in Petah Tikva's Kanyon HaGadol, drew massive crowds, with enthusiasts lining up hours before the launch. In response, retailer KSP initiated significant discounts on select Lego models to attract customers. However, a price comparison by ynet found considerable differences between the official Lego store and KSP, with savings reaching tens of percent or over 1,000 shekels on some items. The official stores, while more expensive, offer a wider selection, exclusive launches, and gifts.
Separately, the Director of the Tax Authority, Shi Aharonovitch, has revived the discussion about canceling the 200 shekel banknote to combat the black market. He suggested that eliminating cash entirely could increase tax collection by 20-30 billion shekels annually and help the country avoid other tax hikes, though the Bank of Israel opposes this. This proposal comes as the government prepares for a potentially difficult budget, with the Tax Authority also considering stricter rules for 'trapped profits' and changes to rental property taxation.
In other economic news, Kibbutz Kfar Giladi has won a tender from the Israel Land Authority to operate the Kedarim quarry in the Galilee for 542 million shekels over 24 years. This acquisition follows their purchase of the Zanoah quarry for 1.1 billion shekels two years ago. The kibbutz's quarrying company anticipates high demand for aggregate due to planned infrastructure projects like the Metro and reconstruction efforts in the North and South. Finally, a case involving an elderly woman with 11 rental properties was highlighted, where her bank froze her joint account with her daughter-in-law due to suspicious financial activity, which was later resolved after legal explanations were provided.
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