Supermarket Owner Exposes 50% Price Gaps in Food Imports
Translated & summarized from Ice by baba
Ilan Sheva, co-owner of the Shuk Ha'Ir supermarket chain, revealed that Israeli food importers are charging up to 50% more than the original overseas prices. This discovery came after his chain began direct importing of goods like oil, rice, and sugar. The chain is also expanding its private label offerings and plans to grow from 16 to 40 branches. Recent financial reports show NIS 340 million in food sales for the first half of the year.
The story in 5 lines · by baba
- Supermarket owner Ilan Sheva claims Israeli food importers charge up to 50% more than overseas prices.
- Shuk Ha'Ir chain is now directly importing products like oil, rice, and sugar to lower costs.
- The chain plans to expand from 16 to 40 branches across Israel.
- Two new stores are planned in Rishon LeZion and Modi'in by early 2027.
- Bikkurei Sadeh recently acquired a 10% stake in Shuk Ha'Ir for NIS 17.2 million.
Ilan Sheva, co-owner of the Bikkurei Sadeh group and the Shuk Ha'Ir supermarket chain, has sharply criticized Israeli food importers, revealing significant price discrepancies. After beginning to import food products directly from overseas manufacturers, Sheva discovered that the prices charged by local importers were up to 50% higher than the original costs. He stated that this "unbelievable" gap largely benefits the importers, while direct importing allows his chain to "significantly lower prices."
Shuk Ha'Ir has started sourcing products like oil, rice, sugar, tuna, and canned goods directly from foreign suppliers, marketing them under the Bikkurei Sadeh brand. The chain is also expanding into private label non-food items, launching the Sis 7 brand for cleaning and toiletries.
This move into direct importing is part of a broader strategy led by Ilan and Shai Sheva, who now manage Shuk Ha'Ir's daily operations and trade policies. The chain currently operates 16 branches and plans to expand to 40. Two new stores are planned: a 1,000-square-meter location in western Rishon LeZion and a 1,700-square-meter store in Modi'in, scheduled to open in the first quarter of 2027, bringing the total to 18 branches.
The management changes followed a September deal where Bikkurei Sadeh acquired a 10% stake in Shuk Ha'Ir from outgoing CEO Rafi Steinberg, the Sheva brothers' brother-in-law, for approximately NIS 17.2 million. This transaction, which valued the chain at NIS 172 million, faced scrutiny from the Israel Securities Authority and institutional investors due to it being a related-party transaction. Following the deal, Alex Lokotkin, formerly CFO of Bikkurei Sadeh, was appointed deputy CEO.
In the first half of the year, Shuk Ha'Ir reported NIS 340 million in food sales and an operating profit of NIS 2.5 million.