Ofer Barak Transforms Stock Chain Into Retail Giant Through Fishman Assets Acquisitions
Over the past two years, Ofer Barak has expanded the Stock discount chain he founded 20 years ago into a major retail group by acquiring key assets from the Fishman family. After purchasing the toy chains Toys R Us and The Red Pirate, Barak recently increased his stake in Home Center to 35%. The group now generates approximately 1.6 billion shekels annually, up from about 300 million shekels four years ago. Barak plans further expansion with new formats and brands leveraging his strong purchasing and import capabilities. "To sell cheaply, you need to buy at the right price," he stated.
The Israeli Competition Authority approved Barak's recent acquisition of a larger share in Home Center, a company previously owned by the late Eliezer Fishman, who declared Israel's largest bankruptcy in 2017 with debts around 4 billion shekels. Barak initially connected with Fishman’s son, Eyal, while seeking to buy Home Center, which was not for sale at the time. This led to acquiring Toys R Us and The Red Pirate for 45 million shekels. Today, the company is 50% owned by Barak's three children and the rest by Fishman’s creditor banks.
Barak described the turnaround of Toys R Us, which was deeply unprofitable when acquired, as a long process involving operational and branding changes. He introduced smaller, experience-focused stores with unique features like custom scents and digital product interactions, aiming to replicate this model internationally. A new 50-dunam logistics center in the Jordan Valley is under construction to streamline imports and distribution.
Barak also launched Stock Express, a new chain targeting neighborhood and city centers with smaller stores tailored to local needs, planning 30 outlets within two years. Additionally, he is preparing to introduce LEVEL, a private label kitchen appliance brand sold online and in a concept store, focusing on design and quality.
Barak emphasized his focus on synergy across his retail holdings to reduce costs and improve purchasing power, importing directly from China and maintaining quality standards. He highlighted challenges such as rising costs from regulations and taxes, and the need to balance price and quality to serve a broad consumer base. Despite competition from online platforms, Barak believes physical stores remain essential for customer experience.
Looking ahead, Barak is considering further acquisitions only if they offer synergy and does not plan to enter unrelated markets like smartphones. He envisions an IPO within the next two years. Barak’s retail philosophy centers on innovation, quality, and affordability, transforming the discount retail sector in Israel.
