New Competition Cuts Back-to-School Supply Prices by Up to 1,000% in Israel

The entry of food chains and discount stores into Israel's back-to-school supply market has introduced significant competition against established specialty retailers like Kravitz and Office Depot. This shift offers parents more affordable options amid rising living costs. Dr. Hazi Gur Mizrahi, CEO of the Retail Research Institute, explained in a "HaOlam HaBoker" interview that the new competition has brought inexpensive, non-branded alternatives to store shelves, benefiting consumers.

However, this competition also reveals enormous price disparities on basic items, sometimes exceeding 1,000%. For example, a 12-pencil set costs just 0.70 shekels at Kravitz but 7.90 shekels at Idan 2000, a 1,028% difference. Similar gaps appear in highlighters, pencil cases, and spiral notebooks, highlighting how uninformed purchases can dramatically increase family expenses.

Another cost driver is brand culture and marketing claims, especially regarding backpacks labeled as "orthopedic." Many parents pay premium prices believing these backpacks offer health benefits for their children's backs. Dr. Gur Mizrahi questioned the medical basis for these claims, noting he found no certified orthopedic approval for such products. This suggests parents may be overpaying for marketing labels rather than proven health advantages, while cheaper alternatives are available.

This evolving market landscape encourages consumers to compare prices carefully and consider non-branded products to reduce back-to-school spending significantly.