New FAIR Supermarket Chain Aims to Undercut Israeli Market Prices by 30-35%

The new supermarket chain FAIR is preparing to launch its first five stores in the Shefela region of Israel, promising prices 30-35% lower than the market average. The inaugural store is slated to open in 2027. Initially, FAIR plans to establish branches in Modiin, new areas of Ramla, and Beer Yaakov, with ambitions to expand to 20 stores and introduce online sales. The business model is based on the 'hard discount' concept pioneered by the German chain Aldi, focusing on consistently low prices rather than temporary promotions or loyalty programs. Each FAIR store will stock approximately 1,200 items, with a core assortment of 1,000 permanent products and an additional 200 seasonal or unique items. A significant portion of the inventory will be under FAIR's own private label, with some products manufactured in Israel and others imported. The company aims to achieve lower prices through direct sourcing from producers, farmers, and smaller suppliers, bypassing large distributors and intermediaries. They will also develop private brands directly with manufacturers, operate cost-efficiently with smaller store formats, and engage in direct import via international partners, including South Africa's World Kosher. Fruits and vegetables will be sourced directly from farmers through the "HaSadeh" company. FAIR reports that over 500 product types are already in stock, with supply agreements in place, including one with the Italian chain Coop. The chain commits to maintaining a gross profit margin not exceeding 15% and will publicly list its prices on the Consumer Protection Authority's website upon opening, despite not being legally required to do so. The project is led by FAIR's co-founder and CEO, Gal Shulman, who previously managed private labels for Shufersal and Carrefour. Shulman stated that the idea for an Aldi-style discounter in Israel originated during the 2011 social protests. After unsuccessful attempts to implement this model within existing retail networks, the decision was made in October 2023 to establish an independent chain.