Tiv Taam Eliminates All Checkout Counters Amid Labor Shortage; Israel's Diamond Industry Hits Historic Low
Tiv Taam supermarket chain announced it will remove all checkout counters, including self-service ones, across its branches due to a severe shortage of cashiers. The transition will begin with ten stores, starting with the Ramat Hahayal branch, where customers will scan and pay for items themselves using handheld devices. Owner Hagai Shalom noted they might keep one or two staffed counters for customers who need assistance. The freed-up space will be used to open new stores under the chain's Asian brand, Mizrah U'Ma'arav, with the first opening expected in about two months. Concurrently, Tiv Taam is expanding its logistics and online robotic centers and investing around 6 million shekels in a new neighborhood-format store in Rishon Lezion.
In the diamond sector, Israel's exports have plunged to historic lows, with total exports from January to June 2026 reaching only $2.4 billion, a third of the peak in 2015. The overall trade volume, including raw imports and exports, dropped to about $4 billion from $12 billion at its height. Factors include Dubai's rise as a tax-advantaged trading hub attracting Israeli traders, the influx of cheaper lab-grown diamonds, decreased demand from China, and a 10% US import tariff imposed during the Trump administration. Nissim Zohar, president of the Israel Diamond Exchange, resigned after two years, warning that without change, the exchange could disappear. He highlighted the competitive disadvantage compared to Belgium, which exports to the US tariff-free, and noted companies relocating operations to Dubai and Belgium.
Apple briefly regained the title of the world's most valuable public company with a market cap of $5 trillion, surpassing Nvidia. Apple's stock surged nearly 60% over the past year, supported by strong iPhone 17 sales and a $31 billion quarterly revenue from its services segment. Unlike competitors investing heavily in AI, Apple relies on Google's AI technology, reducing capital expenditures and appealing to investors wary of cash flow pressures. CEO Tim Cook plans to hand over leadership to John Ternus on September 1, with new initiatives including iPhone rentals and smart home upgrades. Despite supply chain challenges, Apple approved a $100 billion stock buyback and increased dividends by 4%.
The Israeli high-tech sector faces potential layoffs triggered by AI's impact on business models, exemplified by Monday.com. Although Monday.com grew and raised forecasts, AI tools reduce the number of users clients need, lowering subscription revenues. Venture capitalists warn that companies with slowing revenue growth, significant stock declines, or shifts from per-user to AI-usage pricing models are at risk. Investors favor startups replacing entire organizational functions over those assisting employees. Wall Street shows that proactive layoffs can stabilize stock prices, while defensive cuts often lead to further declines.
In retail, the footwear chain To Go is closing 10 stores after shrinking from 70 locations to 34, with plans to reduce to 26. Competition from Zara, Renuar, and discount chains like Urbanica, along with increased rent and labor costs, forced the downsizing. Meanwhile, Aldo will open a single outlet store in Haifa's Hutzot HaMifratz mall, investing about 800,000 shekels to offer significant discounts. Aldo operates 18 stores in Israel and was acquired by Brill in 2024 for 8 million shekels.
