Yohananof Expands Kirkland Brand Imports, Intensifying Retail Competition
Translated & summarized from Calcalist by baba
Yohananof supermarket chain is expanding its import and sale of Costco's Kirkland brand products in Israel, previously exclusive to Osher Ad. Following a successful pilot, the chain will now offer 25 food and non-food items, aiming to increase consumer choice and competition. The move has already reportedly led to price drops of 30-40% on some imported goods, with Yohananof importing the products wholesale.
The story in 5 lines · by baba
- Yohananof supermarket chain is expanding its import of Costco's Kirkland brand products in Israel.
- The Kirkland brand was previously sold exclusively in Israel by the Osher Ad supermarket chain.
- Yohananof will now offer 25 different Kirkland food and non-food items across its stores.
- The expansion aims to increase consumer choice and foster genuine competition in the market.
- Prices for some Kirkland products have already decreased by 30% to 40% due to the expanded availability.
Israeli supermarket chain Yohananof is significantly expanding its import and marketing of products from Kirkland, the private label brand of American giant Costco. This move follows a successful pilot program and aims to increase competition with existing retailers, particularly Osher Ad, which previously held exclusive rights to sell Kirkland products in Israel. Yohananof initially tested four non-food Kirkland items, toilet paper, paper towels, wipes, and trash bags, at the beginning of the year. The strong consumer demand for these products prompted the decision to broaden the initiative.
Starting this week, Yohananof will offer 25 different Kirkland food and non-food items across its branches. The food category will include oat milk, health and protein bars, popcorn, chocolate-covered nuts, spices, fruit purees, and almond flour. The non-food selection will expand to include plastic wrap, laundry gel, laundry scent boosters, dryer sheets, and an Oxi stain remover spray, among others.
Eitan Yohananof, the chain's CEO and controlling owner, stated that the company is now introducing Kirkland food products after seeing the market competition generated by their initial non-food offerings. He emphasized the goal of providing Israeli consumers with more choices, high-quality products at affordable prices, and fostering genuine competition, ultimately benefiting the consumer. Yohananof imports Kirkland products wholesale, similar to practices by other Israeli retailers like Rami Levy and Shufersal for their business divisions.
Elad Charazi, Yohananof's Deputy CEO, confirmed that the chain does not have an exclusive agreement for the brand. He believes that Kirkland products are not suitable for every retail chain's customer base, suggesting that widespread distribution to other chains is unlikely. Charazi noted that while competitors attempted to sell Kirkland items during Yohananof's pilot, they were unsuccessful, attributing this to the brand's high quality rather than solely low prices.
Charazi also reported that the pilot program has already led to price reductions in the Israeli market. Prices for previously sold items have dropped by 30% to 40%, with some products falling from NIS 119 to NIS 79-89, and scent boosters decreasing from NIS 79 to NIS 59.