Israeli Supermarket Chain Enters Perfume Market, Challenging Pharmacy Retailers

The Israeli food retail group, Koor Group, has taken a significant step by acquiring a 50% stake in the perfume chain BLENDO. This deal, finalized last weekend, enables the supermarket chain Neto Hisharon to introduce permanent perfume departments within its stores, moving beyond the usual temporary non-food promotions such as sports shoes, suitcases, and air conditioners.

Neto Hisharon has already begun integrating these dedicated perfume sections in its branches, while BLENDO plans to expand its standalone stores across Israel, currently operating five locations with ambitions to grow into additional cities. This strategic move places Koor Group in direct competition with established pharmacy chains and specialized perfume retailers.

The group believes that incorporating perfume sales into supermarkets will offer consumers lower prices and make purchasing fragrances a routine part of grocery shopping. This initiative follows Koor Group's previous ventures into non-food sectors, including the launch of the Pharm Plus pharmacy chain, which focuses on toiletries and pharmacy products and is set to expand through franchising. However, the perfume segment will operate exclusively under the BLENDO brand, concentrating solely on fragrances.

Discount pricing is a key feature of the new perfume offerings, with mini perfumes (25 ml) priced at 25 shekels each or five for 100 shekels, Eau de Parfum (100 ml) at 79 shekels each or three for 200 shekels, and other perfumes ranging from 99 to 199 shekels. This development reflects a broader trend among Israeli supermarkets to diversify product categories traditionally dominated by pharmacies and specialty retailers, aiming to increase shopping basket size and compete more broadly in the retail market.