Osher Ad Tops Israeli Food Chains by Expanding Beyond Groceries
Over the past two years, Israeli food retail chains have shifted their competition from solely offering the cheapest grocery baskets to including a wide range of non-food items such as iPhones, vehicles, and real estate. This strategy, often involving parallel imports, where products are sourced from overseas distributors or wholesalers at lower prices rather than through official Israeli importers, has reshaped the market.
A recent large-scale survey ranking the top 100 brands for 2026 reveals that Osher Ad leads the food retail sector, ranking 29th overall. The chain's innovative approach, which attracts customers seeking discounted electronics and other goods alongside groceries, has significantly strengthened its market position without heavy advertising budgets. Rami Levy Marketing Hashikma, known for low prices, placed second in the category but dropped from 76th to 98th overall compared to last year. Levy has also expanded into real estate and stock sales, though it faces an ongoing investigation related to transparency in product pricing.
Yellow, a convenience store chain, maintained its third-place position, despite not competing directly in the weekly grocery basket market. Shufersal, Israel's largest supermarket chain, ranked fourth in the category and 113th overall, showing a slight improvement from last year but a notable decline from its 53rd place two years ago. Shufersal's reputation for higher prices intensified after its acquisition by Yossi and Shlomi Amir, who have focused on increasing profitability. The chain reported a net profit of 175 million shekels in Q1 2026, up 11.5% from the previous quarter, attributed to price hikes, operational changes, and the impact of ongoing conflict.
Carrefour improved its standing to seventh in the category and 189th overall, benefiting from winning the Ministry of Economy's "Israel Basket" tender and a marketing campaign featuring Eli Yatzpan. However, the discounted prices applied to less than a third of its stores and stock often sold out quickly. This evolving landscape highlights how Israeli food chains are diversifying offerings and leveraging pricing strategies to attract broader consumer bases amid market challenges.
