Shufersal Reports Sharp Revenue and Profit Decline, Shares Plunge Over 7%

Shufersal, Israel's largest supermarket chain, reported a significant drop in revenue and profits for the second quarter of 2026, causing its shares to fall more than 7% in stock trading. The company's revenue declined by 7.5% to 3.41 billion shekels compared to the same quarter last year, while operating profit plummeted 36% to 170 million shekels. Net profit fell 31% to 135 million shekels. Identical store sales, a key performance indicator, dropped 8.5% in the quarter and 2.7% over the first half of the year, signaling a sharp slowdown in customer purchases amid Israel's high cost of living.

Shufersal attributed the downturn primarily to the timing of the Passover holiday, which concentrated its impact in the first quarter, and a reduced effect from the "Roar of the Lion" campaign that boosted sales in March and early April. Despite the weak quarterly results, the half-year figures showed a smaller decline with revenues down 1.6% to 7.1 billion shekels and net profit down 12% to 310 million shekels. The company also noted an increase in private label sales, which rose to 19.7% of total sales in the quarter and 20.4% for the half-year, as part of a strategy to improve profitability.

Financially, Shufersal reported a working capital deficit of 813 million shekels at the end of June, up from 653 million shekels a year earlier, indicating increased short-term liquidity pressure. However, management assured that available cash reserves and credit lines prevent liquidity problems. Despite the disappointing results, the board declared a dividend payout of 180 million shekels to shareholders, scheduled for October 1. The report highlights challenges facing Shufersal amid economic pressures and changing consumer behavior in Israel's retail sector.