Yango Deli Partners With City Market for Rapid Delivery Expansion
Translated & summarized from Ice by baba
Yango Deli has partnered with City Market to offer rapid grocery delivery from the latter's stores, a deal expected to generate NIS 50 million in business volume. The collaboration will initially establish four new operational points in northern and southern Israel, with plans to expand to 30 locations by 2027. This strategic shift aims to reduce costs and leverage existing retail infrastructure for faster market penetration. The move follows recent leadership changes at Yango Deli and broader expansion efforts by both companies.
The story in 6 lines · by baba
- Yango Deli and City Market partner for rapid delivery expansion, expecting NIS 50 million in business.
- Four new operational points will open in Pardes Hanna, Be'er Sheva, Carmei Gat, and Netivot.
- The partnership aims for 30 Yango Deli operational points nationwide by the end of 2027.
- The strategy focuses on leveraging existing retail stores to reduce expansion costs.
- The deal follows Naama Elshich's recent appointment as Yango Deli CEO.
- City Market is also selling 11 branches and recently opened a new Netivot store.
Online grocery retailer Yango Deli is launching a strategic partnership with the retail chain City Market, owned by businessman Yossi Schwartz, to operate rapid delivery services directly from City Market's branches. This collaboration is projected to increase Yango Deli's business volume by approximately NIS 50 million and simultaneously enhance City Market's purchasing power with suppliers through expanded procurement and optimized use of existing infrastructure.
Initially, four new operational points will be established in northern and southern Israel: in Pardes Hanna, Be'er Sheva, Carmei Gat, and Netivot. These points will function within City Market stores, serving as hubs for picking and dispatching Yango Deli orders without the need for separate "dark stores." This move signifies a shift in Yango Deli's expansion strategy towards geographical growth via retail partnerships, reducing costs and real estate investments. The company aims to reach 30 operational points nationwide by the end of 2027.
The initiative follows the appointment of Naama Elshich, formerly Deputy CEO of Shufersal Amiga, as Yango Deli's CEO two months prior. Elshich stated that the integration of City Market's infrastructure with Yango Deli's technological and logistical capabilities enables swift entry into new areas while maintaining operational efficiency.
Yossi Schwartz, founder and CEO of City Market, noted that the combination of the chain's local presence and Yango Deli's delivery capabilities will create mutual value and offer city residents more convenient and accessible shopping solutions. This development occurs as City Market recently opened a new branch in Netivot for approximately NIS 5 million and is selling 11 of its branches to the retail chain "100 and Beyond" for about NIS 35 million. Yango Deli is also expanding, having recently launched its 17th branch in Netanya, which includes a self-pickup service.
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