Specialty Stores Slash Prices to Compete in Israel's Back-to-School Market

The back-to-school shopping landscape in Israel has shifted dramatically over recent years, with specialty stores facing growing competition from food chains and discount retailers. Once able to set prices with little opposition, specialty stores now contend with rivals offering significantly lower prices on school supplies, from notebooks and pencils to laptops and branded backpacks.

A recent survey by the Retail Research Institute compared prices of 14 basic writing supplies across five leading chains, revealing stark price disparities. For example, the total cost of an identical basket of items ranged from 44.5 shekels at the discount chain Kravitz to 115.6 shekels at Idan 2000, a 2.6-fold difference. Individual items such as scissors and metal sharpeners were up to 12.5 times more expensive in some stores. This highlights how even basic, non-branded products can carry large price premiums.

The branding war extends beyond writing tools to backpacks, where "orthopedic" labels and popular characters from Disney and Marvel drive prices from 200 to over 500 shekels. Parents often pay more for the latest trendy designs rather than for functional differences. Specialty stores, previously associated with higher prices and brand exclusivity, have responded by offering competitive alternatives, sometimes undercutting discount chains.

This price competition is reshaping consumer behavior, with shoppers becoming more price-conscious and selective. The market, estimated at over 400 million shekels annually, now features a broader range of affordable options. Experts advise parents to prepare detailed shopping lists and compare prices carefully, even for small items like erasers, to manage household budgets effectively.

The ongoing rivalry between specialty stores, discount chains, and food retailers is expected to intensify in the coming weeks, likely resulting in further price reductions before the school year begins.