Carrefour Acquires Majority Stake in Pri Market to Enter Wholesale Business in Israel
Carrefour Israel, operated by Global Retail, is expanding beyond its supermarket chain by entering the wholesale market for businesses. The company signed an agreement to acquire 70% of Pri Market, a distribution and marketing firm specializing in food, toiletries, and cleaning products for minimarkets, convenience stores, and small businesses. The deal values Pri Market at 19 million shekels. Pri Market is currently owned by Nahum Beitan (50%), who also holds a 22% stake in Global Retail, Edom Group (45%), and Elad Vannuno (5%).
Pri Market operates a 7,000-square-meter logistics center in the Kfar Qassem industrial zone near Rosh HaAyin, along with a fleet of trucks and forklifts. This acquisition provides Carrefour with a logistics hub to enhance its parallel import activities, improve supply chain control for its stores, and collect distribution fees from suppliers who currently deliver directly to stores. Carrefour will purchase Beitan's entire share and part of Edom Group's share, resulting in a 70% ownership stake, while Edom Group and Vannuno will remain partners. The transaction is subject to approval by the Israeli Antitrust Authority.
Carrefour follows competitors Shufersal and Rami Levy, who have already entered the wholesale business. Shufersal launched its cash-and-carry chain in 2018 and has since acquired distribution companies and developed a dedicated online ordering platform for businesses, generating an estimated annual turnover of 1.5 billion shekels. Rami Levy entered the market in 2022 with a dedicated business sales network and expects to reach a turnover of about 1 billion shekels within three years.
The wholesale sector serves catering companies, hotels, restaurants, nursing homes, convenience stores, offices, and public entities, with an estimated market turnover of tens of billions of shekels annually. For small businesses, these chains offer the advantage of consolidated orders from multiple suppliers, single invoicing, and uniform credit terms.
Carrefour's move comes shortly after Inbal Harson was appointed CEO, facing the challenge of reversing a 9.3% decline in same-store sales in Q4 2023. In Q1 2024, sales rose by only 2.4%, lagging behind competitors. Expanding into wholesale is expected to boost sales. Additionally, Carrefour recently won a Ministry of Defense tender worth about 35 million shekels annually to supply food to its hospitality lounges. Industry sources anticipate Harson will also focus on expanding online sales and accelerating Quick, Carrefour's rapid delivery service competing with Wolt Market, which is currently up for sale.
