Ronen Ganon Plans to Transform Ace Hardware Chain into Israel’s Costco with Expanded Food and Home Goods
Ronen Ganon, a prominent Haredi real estate entrepreneur from Safed, recently acquired Multi Retail Group for 173 million shekels. The publicly traded group owns the Ace hardware chain, Auto Depot, Beitili furniture, and Urban. Ganon intends to merge these holdings with his 50% stake in the "Zol Stock" discount chain, acquired from Yochananof about a year ago. This consolidation is expected to boost his retail sales to approximately 1.7 billion shekels annually.
Ganon aims to transform Ace into an Israeli version of the American Costco by introducing food departments offering packaged dry goods such as rice, pasta, cereals, and coffee, alongside cleaning supplies. He envisions Ace as a one-stop shop for home needs, from food to kitchen faucets. He plans to double Ace’s branches to 50 within a year, each spanning 800 to 1,000 square meters. Drawing on his prior experience co-founding the "Netto Chisachon" food chain and owning "Shai Market" mini-markets, Ganon emphasizes focusing on a core range of 600 to 700 products that constitute 60% of the average consumer basket, with plans to expand into frozen foods and non-food items.
Beyond retail, Ganon is deeply involved in Safed’s real estate development, including a 100 million shekel purchase of an 8-dunam site formerly occupied by the elite Strauss Elite coffee factory. He plans a 350 million shekel luxury residential and commercial project targeting affluent Haredi buyers, featuring 164 units, spa, gym, and pool. Ganon also recently acquired the nearly abandoned Drucker Mall in Safed’s pedestrian zone with partner Shmuel Atias, aiming to revitalize it with major brands.
Ganon, 51, is a well-known Shas affiliate and former party chairman in Safed, with strong ties to Aryeh Deri. He transitioned from yeshiva student to businessman through real estate and charitable ventures, including establishing Sephardic educational frameworks and a low-cost dental clinic in Safed. His retail expansion focuses on combining food and non-food sectors aggressively to offer low prices and innovation. He highlights the higher profitability of non-food discount retail compared to food, aiming to leverage import parallelism and scale purchasing power.
Ace has faced financial difficulties over the years, changing ownership multiple times and recently emerging from losses under private equity firm Kedma, which sold its 70% stake to Ganon at a 60% premium over the current share price. Ganon acknowledges the challenge of reviving a struggling company but is confident in his strategy to grow and innovate. He also comments on the political landscape, expressing confidence that Torah study funding will continue regardless of government changes and that future leaders will seek balanced solutions for Haredi conscription.
Ganon’s vision for Safed includes attracting a growing Haredi population seeking affordable housing compared to Jerusalem, with demand also from overseas Haredim. He is active in both Haredi and secular projects in the city, living in a mixed neighborhood with family members involved in his business ventures. His recent high-profile family wedding underscored his standing within the Haredi community and political circles.
