Israeli Retail Chains Compete in Car Sales with Varied Success and Strategies
In recent weeks, several Israeli retail chains have entered the car sales market, each adopting different approaches and achieving varying results. The supermarket chain Oshar Ad was the first to launch car sales, quickly selling out its stock of Kia Sportage vehicles, which were leased cars from Hertz and not new imports. Oshar Ad’s model is based on limited stock sales without long-term plans, offering buyers a significant discount on a non-hybrid, older model SUV priced around 140,000 shekels. Buyers must visit a car dealership to complete the purchase, as the cars are displayed in stores but cannot be bought on-site.
Following Oshar Ad, Rami Levy introduced Chinese-made vehicles from the new importer DeLoom, including electric cars, pickups, and SUVs from BAIC and Arcfox. Rami Levy’s approach is more structured, promising a long-term partnership with DeLoom and offering cars at prices tens of thousands of shekels below official price lists. However, the brands have a mixed reputation in Israel, with concerns about outdated technology and safety. The cars cannot be purchased directly in stores; customers pay a deposit and then complete the purchase through DeLoom’s dealers. Currently, Rami Levy’s car sales website is inactive.
The latest entrant is Super-Pharm, selling AION electric vehicles, a brand controlled by one of its shareholders. Super-Pharm’s offering is limited to two models, with modest price discounts and additional benefits like charging perks. The cars are listed alongside other retail products on its website, and buyers can only place deposits online. Unlike the other chains, Super-Pharm’s move is seen more as a marketing gimmick than a competitive pricing strategy, with the brand lacking strong market presence in Israel.
Industry experts initially predicted a growing trend of car importers partnering with retail chains, but recent developments suggest this momentum is slowing. Oshar Ad’s initial success was due to its innovative approach and attractive pricing on leased vehicles, while Rami Levy and Super-Pharm’s efforts face challenges related to brand reputation, product quality, and consumer trust. The future of car sales through retail chains remains uncertain, with each player testing different models and market segments.
In summary, Oshar Ad leads with a successful short-term stock sale of leased Kia SUVs, Rami Levy offers a broader but riskier range of Chinese electric and combustion vehicles through a new importer, and Super-Pharm markets limited AION electric cars mainly as a promotional extension. Buyers benefit from competitive prices but face trade-offs in vehicle age, technology, and brand reliability.
