Amir Brothers Boost Shufersal Profits Amid Supplier Tensions and Customer Concerns

Since acquiring control of Shufersal in April 2024, brothers Yossi and Shlomi Amir have more than doubled the company's market value from 5 billion to nearly 12 billion shekels. They implemented strict cost-cutting measures including firing around 150 managers, tightening supplier terms, and establishing an internal security unit to combat theft and fraud. These moves raised gross profit margins but sparked criticism from suppliers and some retailers who accuse them of raising consumer prices and aggressive supplier negotiations.

The Amir brothers also revitalized the discount chain Universe, expanded private label brands, and distributed employee bonuses totaling thousands of shekels annually. Despite these efforts, Shufersal’s sales in existing stores dropped 9% in 2025, the first full year under Amir management, though early 2026 saw a modest 3.7% sales rebound. Competitors like Rami Levy and Yohananof reported stronger growth, raising concerns about Shufersal losing market share.

The brothers’ approach contrasts with the British Issa brothers’ takeover of Asda, which faced similar challenges but eventually split. The Amirs have avoided selling real estate assets, instead investing in internal management and maintaining strong cash reserves. Institutional investors praise the operational improvements but worry about sustaining growth without alienating customers.

Shufersal also ended a popular discount club for security personnel, which generated about 1 billion shekels annually, causing some customer backlash. The Amirs’ strict policies and cost controls have led to staff turnover but also new training programs. Their philanthropic activities, including donations to the IDF and hospitals, remain low-profile.

The coming quarters will test whether the Amir brothers’ strategy can balance profitability with customer loyalty, as the retail market remains highly competitive and price-sensitive.