Sephora Collection Launches in Israel with Six Stores, Historic Maine House for Sale at $1
Sephora Collection is set to open six stores and five corners across Israel on August 19, including locations in Azrieli, Malha, and Ayalon malls. The franchisee, Glam 42, will initially sell mainly Sephora's private label products, which account for 10% of the global network's $1.7 billion annual sales. This pilot aims to expand into a full Sephora network in Israel within two years, potentially bringing all LVMH-owned brands to the country. A second franchisee will begin operations in October, expanding Sephora's presence further.
Israel's Tax Authority is planning a revolutionary VAT reform starting January 2027, which will require real-time VAT payments upon transaction instead of monthly bulk payments. This system, based on automatic invoice transmissions, aims to nearly eliminate fake invoices and increase public revenue by billions of shekels. Meanwhile, there are growing expectations that the next government will raise VAT from 18% to 19% to address budget deficits and increased defense spending.
In Maine, a historic house built circa 1900 by shipbuilder Gardiner G. Dearing is being sold for one dollar, with the condition that the buyer relocates the house to a legal site by November 2027 or it will be demolished. The buyer must cover all relocation costs, which could reach hundreds of thousands of dollars. This follows a recent precedent where a large historic house was successfully moved nearby.
Two Israeli defense companies, Elbit Systems and Next Vision, reported strong financial results but saw significant stock declines due to investor profit-taking. Elbit posted a 38% net profit increase to $173 million in Q2 2026 and a record $32 billion order backlog, yet its stock fell 9.4%, losing about 10 billion shekels in market value. Next Vision's revenues rose 138%, but its shares dropped about 7%.
Additionally, Rafael Advanced Defense Systems has delivered only one "Or Eitan" missile defense system to the IDF, which is not yet operational six months after delivery. Chairman Yuval Steinitz previously promised readiness within days, but delays persist due to operational challenges and budget pressures.
In education, HiTechZone, serving over 400,000 tech workers, is partnering with the "Pashut Gan" network to open 20 kindergartens for children aged 0-3 in tech employment centers across Israel. The first two kindergartens will open in October in Herzliya Pituah and Ramat Hahayal, each accommodating 100 children with monthly fees around 6,000 shekels. The initiative expects employers to subsidize costs through welfare budgets, addressing high demand exemplified by 1,200 children on waiting lists in Tel Aviv's Midtown Towers.
