Stock Chains Capture One-Third of Israel's Back-to-School Market Amid Rising Online Competition

Stock retail chains have taken control of up to one-third of Israel's back-to-school market, according to a survey by Dun & Bradstreet. This shift is reshaping a market once dominated by traditional office supply and stationery chains. The growing competition from stock chains and international online platforms is benefiting consumers through better deals and promotions.

Data from CofaceBDi estimates the back-to-school market at 431 million shekels, with stock stores' share rising to 35% from 30% last year. Max Stock, with 63 branches, is expanding its back-to-school offerings by opening a dedicated section featuring notebooks, writing tools, backpacks, and creative supplies. The chain also launched private-label wheeled school bags. Other players include Zol Stock, Dan Deal, and the stock operations of Rami Levy, alongside the expanding Jumbo chain.

The competition has extended into department stores like Hamashbir and even food retailers such as Osher Ad and Rami Levy, which offer back-to-school promotions including backpacks. Traditional businesses report a slowdown in activity compared to previous years, attributed to the rise of stock chains and international e-commerce platforms, which hold an estimated 10% of the market.

Dun & Bradstreet's Daniela Raz Weinerav noted that a lower dollar exchange rate has reduced import costs, enabling more attractive promotions. CofaceBDi projects that specialized office supply stores will account for 39% of revenues, approximately 154 million shekels. The average back-to-school shopping basket, including a backpack, stationery, notebooks, water bottle, and lunchbox, is estimated at 480 shekels, with prices ranging from 250 to 750 shekels depending on brand and quality.

Roni Alpern of Dun & Bradstreet highlighted that competition now extends beyond private stores to large stock chains and international platforms, increasing price pressure on traditional players. AliExpress recently launched a back-to-school sale for Israeli consumers, lowering the free shipping threshold and offering pickup points, but the late timing and shipping delays risk items not arriving by the school start on September 1. Israeli consumers tend to buy bulky items like backpacks locally due to shipping costs and timing, often shopping late in August, which limits the appeal of overseas purchases. While sea freight costs have risen, they have not yet impacted product prices, though higher shipping expenses may increase import costs and consumer prices in the future.